File No. 2074/11–13.

Chargé Hitt to the Secretary of State.

[Extract.]
No. 218.]

Sir: I have the honor to transmit herewith an extract, in triplicate, from the Tribuna newspaper of the 16th instant containing an announcement by the semiofficial Stephani News Agency of the provisions [Page 749] of the recently signed commercial treaty between Italy and Russia, together with a French version of the same and a translation of the Italian text.

From this article it appears that the present reduced duty of 24 lire per hundred kilograms on petroleum will be maintained until January 1, 1911, when a further reduction to 16 lire will take place, and that Russian exporters shall be entitled to have their petroleum appraised by volume as well as weight on the basis of 125 liters as the equivalent of 100 kilograms.

Italy also accords the maintenance of the existing duties on grain.

In return she secures a reduction of some 36 per cent in the customs duties on her acid fruits, such as oranges, lemons, limes, etc., and a fixed rate of 8 rubles per pud on raw silk to take the place of the rates of the new Russian tariff, which are 10 rubles for the first three years, 20 for the next two years, and 30 thereafter. Italy also secures proportionate reductions on manufactured silk.

Russia further undertakes to accord to Italy all the favors with respect to silk which she may in the future grant to bordering Asiatic nations, which are at present Italy’s principal rivals in this industry. Italian silk spinning is further protected by an undertaking on the part of Russia to impose no export duties on cocoons.

There is also a slight reduction on olive oil, and Italian coral is to enjoy the rate of 2 rubles per pound, already granted to France, in place of the 10-ruble rate.

Furthermore, the existing rates on marbles, tartar, and sumach are not to be increased.

I also include with the Italian extract as to the treaty an interview thereon with Mr. Luigi Luzzatti, who was minister of the treasury in the Sonnino cabinet and who is one of the foremost political economists of Italy.

I have, etc.,

R. S. Reynolds Hitt.

[Inclosure.—Translation.]

Stephani’s Agency communicates the following:

At the next renewal of the labors of Parliament the treaty of commerce between Italy and Russia, signed at St. Petersburg June 27 last, will be presented.

This treaty, similar in its general lines to those lately entered into by Italy and Russia with the other European powers, is the first tariff treaty concluded with us by Russia, which has up to a few years ago hitherto maintained in all its treaties the autonomy of its own customs tariff.

Of the two tariffs appended to the new treaty, that for importations into Russia relates to acid fruits (such as oranges, lemons, limes, etc.), silk, olive oil, marbles, coral, tartar, and sumach.

Special duties in favor of Italy are stipulated for with respect to acid fruits, silk, and oil.

The duty on acid fruits is lightened by 36 per cent, being reduced from 1.57½ rubles per pud to 1 ruble.

For raw silk, on which the duty of 3 rubles per pud would be increased under the new general tariff to 10 rubles for the first three years, 20 for the next two years, and 30 after the fifth year, a fixed duty of 8 rubles is established during the whole duration of the treaty.

The new general duties on manufactured twisted silk are reduced proportionately.

Both in favor of acid fruits and of silk Russia further undertakes to extend to Italy, at once and unconditionally, the favors which she may accord in the future, in modification of the status quo, to adjacent Asiatic countries, whereby, [Page 750] with respect to these countries, the conservation of the conditions which have enabled Italy up to the present to hold in the Russian market the first place in the commerce in these products remains assured.

With respect to olive oil, as to which the last Franco-Russian convention did not guarantee to France the preexisting reduction from 3.30 to 2.97 rubles, a reduction to 3.10 has been agreed upon beginning with January 1, 1911, up to which date the duty in force is binding.

For coral the reduction made to France from 10 to 2 rubles per pound (½ kilo) is assured.

Likewise for marbles, tartar, and sumach the general and conventional duties in force are obligatory.

The new treaty also protects our silk spinning, insuring for the cocoons exemption from Russian export duties.

As the equivalent of these concessions, Italy accords the maintenance of the general duties in force on mineral oils and on grain, namely, wheat, rye, oats, barley, and other grain, undertaking to reduce from January 1, 1911, the duty on light mineral oils from 24 to 16 lire, and according in the case of petroleum the right of appraisement by volume on the basis of 125 liters to the quintal (100 kilograms).

In all other respects the Italian tariff remains unchanged.

By the new treaty the two States undertake to negotiate special conventions for the protection of artistic and literary property and for that of industrial property.

Matters relating to transit, to prohibitions of importation and exportation, to internal taxes on production, and those concerning navigation, are regulated as in the other latest treaties.

The new treaty is to enter into force one month after the exchange of ratifications, for which the maximum delay is fixed at December 26 next. It will remain in force until December 31, 1917, and unless denounced one year previous to that date will continue to be in effect by tacit renewal from year to year.