No. 749.
Mr. Bayard to Mr. Connery.

No. 203.]

Sir: I inclose for your information a copy of a letter from the secretary of the Pacific Mail Steam ship Company, dated the 31st ultimo, to the effect that the agent of the Marquis de Campo was on his way to Mexico to make a contract with that Government for the Spanish Central American line of steamers between San Francisco and Panama, and to obtain, if possible, a differential duty of 5 per cent, in favor of that line.

In this connection attention is invited to the Department’s Nos. 145 and 147 of August 3 and 12, 1887, concerning the complaint of this Government against the States of Central America for having discriminated unfavorably against American commercial interests through their contracts with the Spanish line of steamers spoken of.

Recently, however, in view of the urgent remonstrances of Mr. Henry C. Hall, United States minister at Guatemala City, against this unjust action on the part of those States, there is a prospect of a favorable result, and that our vessels in those ports will be granted the same rebate as may be extended to others; and it would be much to be regretted if this Government were to receive a less measure of friendly and equitable treatment in this regard from Mexico than from the Central American States.

You will take occasion to present the friendly remonstrance of this Government to the minister for foreign affairs of Mexico against any measure which discriminates against our commercial interests in this regard.

I am, etc.,

T. F. Bayard.
[Inclosure in No. 203.]

Mr. Lane to Mr. Bayard.

Sir: I have the honor to advise that under date of October 5 our special agent at Guatemala City, Mr. J. H. Leverich, writes us as follows:

“I beg to advise you that Mr. Irygoyen (special agent of the Marquis de Campo) went to San Francisco, per steam-ship Guatemala, en route for Mexico, to make a contract with that Government for the Campo Line and to obtain, if possible, a differential duty of 5 per cent, in favor of that line.”

Bearing in mind the satisfactory results from the action which the Department has taken, through Minister Hall, in practically causing the Republics of Guatemala and Salvador to withdraw the discriminations against American bottoms, in the shape of differential duties previously granted to the Marquis de Campo, we beg to call the attention of the Department to the overtures which our special agent now advises are to be made to the Government of Mexico, and have no doubt that, in view of the friendly feeling existing between the two Republics, our Government will have no difficulty in securing from the Mexican Government as favorable action towards this company’s steamers, as has already resulted from the stand which the Department has taken in connection with these differential duties toward the Central American Republics.

I have, etc.,

W. W. Lane,
Secretary.