639.003/61

The Secretary of State to the Secretary of the Navy ( Daniels )

Sir: I have the honor to acknowledge the receipt of your letter of September 23, 1919 (16870–401 Op–56), with which you enclose a letter addressed to you by the Military Governor of Santo Domingo relative to the tariff duties proposed to be placed in force in the Dominican Republic.52

In accordance with the requirements of Article III of the treaty of 1907 between the United States and the Dominican Republic relative to the necessity of an agreement between the two Governments to modify the import duties of the Dominican Government, the Military Governor submits a demonstration to establish, in accordance with the treaty provisions mentioned, that under the duties as proposed to be modified “on the basis of exportation and importation to the like amount and the like character during the two years preceding that in which it is desired to make such modification, the total net customs receipts would at such altered rates of duties have been for each of such two years in excess of $2,000,000 United States gold.”

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It appears from the demonstration submitted by the Military Governor that the import duties collected in the Dominican Republic during 1917 were $4,923,840.83, and during 1918 were $3,967,885.74; that the proposed revision of the customs duties represents an average reduction of 37.98% in all import duties now applicable, taking into account as reductions the proposed additions to the free list, and that, on the basis of exportations and importations to the like amount and the like character during the year 1918, the total net customs receipts would, at the altered rate of duties, have been for such year approximately $2,460,000. Inasmuch as the import duties collected during the year 1917 were considerably in excess of those collected during 1918, it appears that the total net customs receipts in the year 1917 would, if the altered rates of duties had been then in force, have been largely over $2,000,000. It is understood from the demonstration that all of the figures before mentioned are in terms of United States gold.

In view of the foregoing, I have the honor to inform you that the Dominican Executive has demonstrated, and the President of the United States recognizes, that, on the basis of exportations and importations to the like amount and like character during the two years preceding January 1, 1919, the total net customs receipts would, at rates of duties as altered by the proposed new tariff, have been, for each of such two years, in excess of the sum of $2,000,000 gold.

Therefore, I beg to request you to advise the Military Governor of Santo Domingo that the Government of the United States agrees to the proposed modification of the import duties of the Dominican Republic.

I have [etc.]

Robert Lansing
  1. Letter and enclosure not printed.