under contract with them to ply between the colony, Hawaii, and San Francisco. I understand that there is at present nothing to preclude foreign vessels from trading between the United States and the Hawaiian Islands; and that no legislation is contemplated which would interfere with the trade. I should be very grateful for any information which you may be at liberty to give me on these points. I am, etc., JULIAN PAUNCEFOTE. Mr. Adee to Sir Julian Puuncefote. DEPARTMENT OF STATE, Washington, September 30, 1898. MY DEAR SIR JULIAN: I had the honor to receive your personal note of the 24th instant in which you express the apprehension of Her Majesty's Government "lest one of the results of the annexation of the Hawaiian Islands to the United States may be to interfere with the carrying trade between those islands and the United States, no inconsiderable portion of which is now done in British bottoms." You state your understanding that there is at present nothing to preclude foreign vessels from trading betwen the United States and the Hawaiian Islands and that no legislation is contemplated which would interfere with the trade, and request information on these points. As the question is one properly for the consideration of the Treasury Department, I referred your inquiries to the Secretary of the Treasury and am now in receipt of a letter from Acting Secretary Spaulding in reply. Your understanding that there is at present no regulation to preclude foreign vessels from such trade, coincides with the view of the Treasury Department, based on an opinion of the Attorney-General, set forth in the appended circulars. The Acting Secretary of the Treasury is, however, unable to concur in your further understanding that no legislation is contemplated which would interfere with this carrying trade. While he does not undertake to forecast the form which legislation by Congress may take, the general policy of this country to reserve to American vessels trade between American ports is so firmly established that its reaffirmation by Congress in the legislation providing for the extension of American laws to the Hawaiian Islands does not appear to him to be doubtful. He thinks it possible that this policy may be not put into effect until there has been an adjustment of American tonnage to meet the situation created by annexation, but he thinks it probable that at an early date trade between the United States and the Hawaiian Islands will be confined to American vessels. It may be noted that, in obedience to traditional policy, trade between the United States and Porto Rico has already by regulation been confined to American vessels. There would seem to be no occasion to apprehend serious interference with the carrying trade between the United States and the Hawaiian Islands as a result of such legislation as Congress may enact. The total combined entries and clearances of vessels from and to Hawaiian ports and ports of the United States during the fiscal year ended June 30, 1897, were 461 vessels of 361,173 net tons, of which 394 vessels of 283,211 net tons were American, and only 13 vessels of 19,040 tons were British. These figures do not include steamers which merely touch at Honolulu to leave or take on mail and a few cabin passengers and their baggage to and from Asiatic and Australian ports. With regard to these the American consul-general at HonoÎulu, under date of January 24, 1898, reported: The majority of these steamers are British, and as they carry very little freight to and from these islands it is misleading to include them in any report of the nationality of vessels employed by the Hawaiians in their commerce with the world. I trust the foregoing observations meet your inquiries on the subject, and am, etc., ALVEY A. ADEE, Acting Secretary. RAISING OF BLOCKADE OF CRETE. Sir Julian Pauncefote to Mr. Hay. BRITISH EMBASSY, Washington, December 13, 1898. SIR: On behalf and at the request of my colleagues, the representatives of France, Italy, and Russia, as well as on behalf of my Government, I have the honor to transmit to you for the information of your Government the inclosed communication relative to the raising of the blockade in Cretan waters, the institution of which I had the honor to notify to Mr. Sherman on March 24th last year.1 I have, etc., JULIAN PAUNCEFOTE. [Inclosure in British note of December 13, 1898.] WASHINGTON, December 13, 1898. We, the undersigned, representatives of France, Great Britain, Italy, and Russia, have the honor to inform the Government of the United States that the admirals of the four powers in Cretan waters have issued a notice that the blockade of Crete has been raised from the 5th of December instant, but that the importation of arms and munitions of war is absolutely prohibited. JULIAN PAUNCEFOTE, H. B. M. Ambassador. COUNT CASSINI, Ambassador of Russia. Chargé d'Affaires de France. Chargé d'Affaires d'Italie. 1 Printed in Foreign Relations, 1897, p. 254. POSTAL UNION CONVENTION, ADHESION OF GREAT BRITAIN TO. Sir Julian Pauncefote to Mr. Hay. BRITISH EMBASSY, Washington, December 13, 1898. SIR: Her Majesty's postmaster-general has received a letter from the international bureau of the Postal Union which seems to indicate that a doubt exists in some quarters as to whether the adhesion of Great Britain to the Postal Union Convention of Washington implies the adhesion of the British colonies. To remove all uncertainty on this point, I am instructed by Her Majesty's principal secretary of state for foreign affairs to inform the United States Government that ministerial approval on behalf of Great Britain of the Postal Union Convention, the Final Protocol, and the detailed regulations signed at Washington on June 15, 1897, by the delegates from this country appointed to attend the Postal Union Congress held in that city, implies, in accordance with precedent, equal ministerial approval on behalf of those British colonies which the imperial post-office represents in the affairs of the union—that is to say, all the British colonies belonging to the union except India, Canada, the Cape Colony, Natal, and the Australian colonies. I have, etc., JULIAN PAUNCEFOTE. HAWAIIAN CONSULS. Sir Julian Pauncefote to Mr. Hay. BRITISH EMBASSY, Washington, December 26, 1898. SIR: In compliance with a desire expressed by the governor of Queensland, I have the honor to inquire whether the Hawaiian Islands are any longer entitled to be represented by a consul, or whether their consulates have been merged in those of the United States. By the direction of the Marquis of Salisbury I request you to be good enough to favor me with an early reply to the above question. I have, etc., JULIAN PAUNCEFOTE. No. 1297.] Mr. Hay to Sir Julian Pauncefote. DEPARTMENT OF STATE, Washington, December 30, 1898. EXCELLENCY: I have the honor to acknowledge the receipt of your note of the 26th instant, in which, in compliance with the desire expressed by the governor of Queensland, you inquire whether the Hawaiian Islands are any longer entitled to be represented by a consul or whether their consulates have been merged in those of the United States. FR 98-25 By the joint resolution of Congress approved July 7, 1898, providing for the annexation of the Hawaiian Islands to the United States, it is provided that, "until legislation shall be enacted extending the United States customs laws and regulations to the Hawaiian Islands, the customs relations of the Hawaiian islands with the United States and other countries shall remain unchanged.' This Government has regarded that provision of law as continuing the commercial relations of the Hawaiian Islands with other states pending such legislation by Congess concerning the Hawaiian Islands as may be deemed necessary or proper, and consequently the United States continues to conduct its commercial business through its own consular officer at Honolulu as a de facto commercial agent, while the Hawaiian consuls in this country continue to act in a similar capacity. Until the commercial dependency of the Hawaiian Islands upon the United States shall be regulated by law, it would seem desirable that the present representatives of the Hawaiian Islands should continue to discharge their commercial functions as such agents in foreign countries, and until such laws shall be passed this Government is not prepared to commission those consular officers as full consular officers of the United States or to merge their functions in those of existing consular representatives of the United States in the same localities. With regard, however, to the consular officers of foreign governments in the Hawaiian Islands the case is somewhat different, and inquiries on this point have been, in several instances, answered by expressing the opinion of. this Government that it would be desirable for the existing foreign consuls in the Hawaiian Islands to receive new commissions from their governments, upon which this Government could issue its exequatur covering the present provisional arrangement with respect to the commercial intercourse of Hawaii with foreign countries. I have, etc., JOHN HAY. HAITI. DISCRIMINATING TAXES UPON FOREIGN MERCHANTS, CLERKS, No. 35.] ETC. Mr. Powell to Mr. Sherman. LEGATION OF THE UNITED STATES, Port-au-Prince, Haiti, September 24, 1897. SIR: I call the attention of the Department to a law recently enacted by the Chamber of Deputies, a copy of which I herein inclose, and which is to take effect October 1, 1897. The provisions of this law create an invidious distinction between native and foreign merchants, as well as between native and foreign clerks, which is in direct conflict with the rights of citizens under the treaty (art. 5, treaty with Haiti, p. 551) made between the Governments, as cited in the Metzger case, dispatch No. 19, August 31, 1897. It is intended to enforce this law rigidly. Those of our citizens that are in business and have large capital invested have asked the protection of the Government, and to protest against its enforcement. They do not and have not objected to paying this tax, providing the native merchant pays the same, nor have they objected to paying a tax slightly in excess of that required of the native merchant to conduct their business. They were aware that the Government needed money, and stood ready in this way to give the required assistance. The present enactment makes this tax excessive, and virtually drives them out of business, without any compensating feature. Before taking action in reference to this law, will the Department favor me with instruction on the following: 1. Can this Government enact a law that is in conflict with treaty rights? 2. If this right be granted to them, to what extent are we to submit? 3. To what extent shall this protest be made? 4. Such further information as the Department deems necessary. I also inclose copy of law giving the rates of taxes the native merchant is required to pay; no tax is required from native clerks. I have, etc., W. F. POWELL. [Inclosure 1 in No. 35.] THE HOUSE OF COMMONS. Considering that it is essential to augment by all equitable means the revenues of the communes so as to permit the communal councils to meet the necessities of the administration; Considering that practice shows the impossibility of preventing foreigners from exercising commerce but under title of consignee's merchants; Considering on the other part that it is urgent to facilitate the collection of communal taxes by a more rapid procedure than that which has been exercised up to this time; |