No. 324.
Mr. Carter to Mr. Blaine.

[Extract.]
No. 39.]

Sir: Since mailing my dispatch No. 36, relative to the special duties proposed in a recent decree of the Congress of Venezuela to be imposed on such European and American commodities as are transhipped from the West Indian islands into the ports of the republic, I am reliably informed that the British Government has recently protested, formally, through its diplomatic representative at this capital, against the enforcement of this decree, on the alleged ground that it violates the provisions of the treaty stipulations in force between the two governments. My information is not official, but is entitled, however to great weight. Such a protest at this time * * will materially increase the probability of a repeal or suspension of the decree. * * *

The second section of the decree empowers the Executive to allow, in [Page 526] certain cases, and as compensation for the extra expenses incurred under the law, a rebate on the duties imposed, but he is not authorized to suspend the operations of the decree. This is the function of the body enacting it, and I suppose that, until the convening of Congress in February, nothing further than a friendly assurance from the Executive of co-operation in the desired direction can be accomplished.

I have, &c.,

GEO. W. CARTER.