No. 333.
Mr. Baker
to Mr. Frelinghuysen.
Caracas, June 19, 1882. (Received July 8.)
Sir: Referring to my No. 487, of date 13th instant, I have to say that on Saturday the 17th instant I had a conversation with Mr. Seijas, in which I presented to him the view suggested in my said No. 487 respecting the additional duty of 30 per cent, therein referred to. I stated to him, in substance, that I had no doubt whatever that his government did not intend to injure the commerce of the United States with Venezuela in imposing this additional 30 per cent. of duty on commodities coming to Venezuela by way of colonial ports, but that we felt that this was the effect of the measure; and I presented to him the idea of so modifying the measure in question as to make it inapplicable to consignments of goods coming by way of these ports, but covered by through consular invoices and bills of lading to Venezuelan ports; and I added a remark to the effect that, so far as I then saw, this would effectually remedy the mischief the measure was working to our commerce. He stated, in substance, that the object of the law was to break up the smuggling that was going on from Curaçoa and Trinidad, and * * * that it was the opinion of the government that the measure would be beneficial to the commerce of foreign states by breaking down smuggling.
I indicated to him that I did not concur in the latter view; pointed out to him how the measure interfered with the introduction of our commodities by deeper draught steamers to Curaçoa, and by one of shallower draft thence to Maracaibo, and the like interference with the introduction of our commodities, as I understand the matter, first to Port of Spain in Trinidad, and thence by steamers adapted to the service up the Orinoco. I indicated to him that the object of putting a stop to smuggling was certainly a good one, but that in my opinion the measure in question would retain all the efficacy it might have as against smuggling after being modified as I had suggested; that I was clearly of opinion that the exempting of goods from the operation of the measure which proceeded from the United States with through consular invoices and bills of lading had no more tendency to encourage smuggling, although the goods should stop temporarily at an intermediate colonial port than if they were sent directly through; and I suggested to him that if his government should see the matter in the same light, 1 supposed it would make the modification I had pointed out. I understood him to give a not very hearty assent to this suggestion, and he made a remark to the effect, as I understood him, that he thought it would be difficult for the government to so see it. He said he would consider the matter, and inform the President of what I had said about it. I intimated to him that I would see him further on the subject, and purpose doing so at an early day.
I am, &c.,