No. 327.
Mr. Carter
to Mr. Frelinghuysen.
Caracas, January 25, 1882. (Received February 10.)
Sir: Acknowledging the receipt of your No. 25, and referring to my No. 36 relative to the decree imposing special duties on products of Europe and the United States, when transhipped in the West Indian Islands into Venezuela, I have to say that the favorable prognostications of my last dispatches were based upon my conversation with the minister of exterior relations. Recently the minister informed me that he had submitted my views to President Blanco, and that he had been instructed to inform me that the objects of the law were the suppression of smuggling, and the prevention of revolutionary plots against the existing government, and further that the President believed, in view of the fact that the United States had no colonial appendages upon which to distribute its favors and trade, that this law would lead to a more direct trade between the republics, and would ultimately enable the United States to secure the trade that England, France, and Germany now derived from Venezuela, and thus be ultimately beneficial to the commerce of the United States. I do not accept as just the conclusions stated. I am sure that this decree proceeds upon a misapprehension of the industrial facts of the case, and in ignorance of the laws of trade. I do not believe that it will suppress smuggling, but on the contrary facilitate it, nor do I believe it will prevent discontent or the operations of political malcontents, but will further and aid their plans. Yet I am sure that the true grounds of enacting the decree are stated, and I believe that the President thinks it will be ultimately helpful to American commerce. Venezuela, outside of a few coasting vessels, has no mercantile marine; all her foreign carrying trade is under other flags than that of Venezuela. Under the circumstances, the public men of Venezuela have not studied and do not understand this commercial question, and it is difficult to get them to appreciate the argument submitted in this connection.
President Blanco and the minister of exterior relations have each discussed matters of public moment with me repeatedly, and have invited suggestions from me on such subjects, and have thanked me for such as I have submitted. Under this privilege, I am preparing a memoranda of reflections upon this decree, especially in its political and commercial effects upon the two republics, with the view of securing the attention and action of the President, and the minister of exterior relations says that he will guarantee careful consideration of the same. I present it unsigned, personally and as a friend of the two countries, because I can thus present considerations that could not appropriately appear in an official communication on the subject. I do not despair of success, either to secure a repeal of the decree, or else such a modification as will protect the commerce of steamers now plying between Venezuela and the United States. I will hereafter furnish a copy of the memoranda submitted by me.
I have, &c.,