Mr. Bryan to Mr. Hay.

No. 464.]

Sir: Referring to my Nos. 441 and 444 of the 14th and 19th of August, respectively, relating to the ministerial decree which, in order to injure Bolivian commerce, imposes transit duties, I have the honor to report that the Governments of France and Germany have instructed their ministers to protest against this proceeding on Brazil’s part. The British minister, also under telegraphic instructions, has called on me several times to inquire whether I had been directed to notify the foreign office here of displeasure on our part at this Government’s unwarranted action. The French minister informs me that the minister for foreign affairs has reasserted to him with emphasis, both verbally and in a long note, his belief in the right of Brazil to impose transit duties. My colleagues, however, agree with me in the belief that Baron Rio Branco, an experienced diplomat who will become minister for foreign affairs on November 15, will not sustain his predecessor’s contentions or attitude with regard to the commercial rights of Bolivia and of other nations. It is our separate conviction that long before January, when the rubber shipments begin, the new Government of Brazil will have solved the pending difficulties with regard to free transit on the Amazon River. Nevertheless, as I may be in error in this opinion, I deem the matter of sufficient importance to lay the facts before the Department as they present themselves to me, so that my successor may be thoroughly informed regarding every phase of this question, and so that the Department understandingly may be prepared to take such action in the premises as it may deem proper.

I have, etc.,

Charles Page Bryan.