No. 377.
Mr. Comly to Mr. Evarts.

No. 85.]

Sir: I have the honor of transmitting the concluding correspondence with the Hawaiian foreign office upon the subject of tariff on cotton clothing, showing that the Hawaiian Government has accepted the interpretation of Treasury experts and the honorable Secretary of the Treasury, and has ordered that duties shall not hereafter be levied upon cotton clothing, the same being the growth, manufacture, and produce of the United States.

I am, &c.,

JAMES M. COMLY.
[Inclosure 1 in No. 85.]

Mr. Comly to Mr. Kapena.

No. 162.]

Sir: In a note dated May 2, 1879, I had the honor to call your excellency’s attention to the question whether the customs officers of His Majesty had properly construed a certain article in the reciprocity treaty, in collecting a tariff upon all cotton goods when manufactured into clothing, the same being the growth, manufacture, and produce of the United States.

In a reply dated June 9, your excellency having stated the grounds of the decision, with an Inclosure from the collector-general elaborating his views and reciting his instructions, you thereupon express a desire to have the opinion and interpretation of the Treasury experts at Washington, “His Majesty’s Government wishing to give the reciprocity treaty the most liberal interpretation.”

In compliance with the desire so expressed, I forwarded copies of all notes, dispatches, and inclosures of the correspondence to the honorable William M. Evarts, Secretary of State, under date of June 9, 1879.

I have the honor now to transmit to your excellency a letter from the Hon. John Sherman, Secretary of the Treasury, with Inclosure, giving it as the opinion of the Treasury Department, upon unanimous advice of its experts at the most important ports, that “ready-made clothing of cotton is entitled to admission free of duty into the Hawaiian Islands, under the treaty mentioned.”

I need not recite the facts and arguments which have led to this interpretation, further than to say that they are based mainly upon an expert interpretation of the terms used in the treaty. I simply desire to call your excellency’s attention to the fact that a judicial interpretation of the treaty, according to the rules and maxims of the courts, would be no less conclusive as to the meaning of the phrase “cotton and manufactures of cotton.” The collector-general in his communication, a copy of which was inclosed in your reply of June 9 before mentioned, argues that “although the [Page 591] words ‘other than when ready-made clothing’ were not expressed here, as in regard to wool and manufactures of wool or textile manufactures, still such was the understanding and intention,” &c., and his reasoning seems to he that because “other than when ready-made clothing” is expressed in the two clauses, it must be taken to be implied as to the other clause, he “can see no reason why cotton clothing should be admitted free and all others made dutiable.” Now, it seems to me that the reason (or one reason) why cotton clothing should be admitted free and the other made dutiable is that “the other” is expressly excepted from the free list, while cotton clothing is not. The rule of interpretation has been for ages, expressum facit cessare tacitum, exactly the reverse of that relied upon by the collector-general.

Cordially reciprocating your excellency’s aspirations for liberality and frankness in the mutual relations between the two nations we have the honor to represent, and renewing the assurances of my high consideration and respect,

I am, &c.,

JAMES M. COMLY.
[Inclosure 2 in No. 85.]

Mr. Kapena to Mr. Comly.

Sir: I now beg to reply to your dispatch of the 11th instant, acknowledged on the 13th, regarding the tariff levied at our custom-house upon cotton goods when manufactured into clothing, the same being the growth, manufacture or produce of the United States. Your excellency alludes to a dispatch from this department which was accompanied by an Inclosure from the collector-general of this country, giving his reasons for levying the duty. In that dispatch it was stated that His Majesty’s Government would be glad to have the opinion and interpretation of the Treasury experts at Washington on the question, and you are likewise assured that His Majesty’s Government desire to give the reciprocity treaty a most liberal interpretation.

Your dispatch of the 11th instant was accompanied by a copy of a dispatch from the honorable Secretary of the Treasury of the United States to the honorable Secretary of State, dated the 17th of September; and likewise a copy of a letter from the appraiser of the custom-house at Boston dated the 11th of September.

By these dispatches His Majesty’s Government is glad to learn that the views and reasons expressed by our collector-general have received a kindly and candid consideration, and inasmuch as, after deliberately weighing the subject in a spirit of fairness and candor, the honorable Secretary of the Treasury of the United States has reached the conclusion that “cotton goods when manufactured into clothing “should not be subjected to duty in this country under the provision of Article II of the reciprocity treaty, I hasten to assure your excellency that His Majesty’s Government accepts the interpretation thus placed on Article II, and that duties will hereafter not be levied upon “cotton goods when manufactured into clothing, the same being the growth, manufacture or produce of the United States.”

Renewing the assurances of my highest respect and consideration,

I have, &c.,

JNO. M. KAPENA.
[Inclosure 3 in No. 85.]

Official notice from the collector-general.

[From the official publications.]

By order of his excellency the minister of finance, from nd after this date all cotton goods, when manufactured into clothing, the same being the growth, manufacture or produce of the United States, will be admitted free under the provisions of the reciprocity treaty.

W. F. ALLEN,
Collector-General.