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I am instructed to apply for reparation for the insult offered to the American flag within the waters of Colombia; for the highly criminal and piratical act of seizing by force and arms a peaceable American vessel; of reducing her owner, captain and crew to the condition of prisoners, and so holding them for many days, making them unwilling agents of a nefarious conspiracy against peace and good order, periling their lives and health in such enterprise, injuring the property of the owners of the steamer, and for all other damage which may have accrued or may accrue from such unlawful and felonious acts.

It is, therefore, reasonably expected by the United States of America that the perpetrators of these high-handed outrages will be vigorously prosecuted, under the laws of the United States of Colombia, to conviction for the crime of which they are evidently guilty.

This reparation by judicial punishment is due to the dignity of the nation whose flag has been insulted, and whose citizens have been imprisoned, and also to the dignity of the republic within whose waters so gross an outrage has been committed.

The undersigned is unofficially informed that some arrangement for an arbitration has been entered into by the owners of the steamer. The United States of America have nothing to do with any disposition made by them as to their private loss and injury, the question more immediately concerning the Government at this time being adequate and prompt punishment, by judicial proceedings against the criminals, for the offenses stated.

The undersigned may be permitted to state, in addition to the foregoing, that the fact that the outrages complained of occurred in the course of one of the numerous revolutions which unfortunately afflict this country, does not, in his judgment, constitute the slightest excuse for the acts complained of.

The revolution itself, in his opinion, was a crime, which the laws and usages of Colombia may mitigate, condone, or excuse; that, so far as affects Colombian citizens only, is a matter for Colombia alone. But when such a pretended revolution, not against the general government, but against a particular state government, assumes to violate the laws of civilized nations, the treaty stipulations of their own country, and the sovereignty of a foreign friendly nation over its own ships and its own flag, it is taken out of the category of domestic disorders, and arrives at the dignity of an offense against civilization, and must be promptly and effectually punished.

In the full confidence that the judicial power of Colombia is competent to administer complete and effective justice against the criminals indicated for the acts perpetrated by them, the undersigned, on behalf of his Government, has the honor to renew the request that all necessary steps may be taken by the executive power to bring about so desirable an end.

The undersigned also has the honor to present herewith the sworn statements of John Schuber, Robert Howard, Mrs. Hannah E. Saunders, and Captain Saunders, the originals of which are on file in the office of the United States consul at Panama, and which are believed to be absolutely true in all substantial matters, and has the honor to be, &c.,

No. 46.]

S. A. HURLBUT,

Minister Resident, United States America.

No. 58.

Mr. Fish to Mr. Hurlbut.

DEPARTMENT OF STATE, Washington, October 11, 1871. SIR: Your dispatch of the 17th of August last has been received. It is without the number required by your personal instructions, which you will be careful to attach to all public dispatches. It is expected that the offenders in the case of the steamer Montijo will be prosecuted without any delay which can be avoided. A copy of your note to the Colombian minister for foreign affairs on the subject, which you have omitted to send, would be acceptable. A copy of one which the Department has recently addressed to Mr. Perez, the minister of Colombia here, relative to the postponement of the payments of the amount due under the claims convention with New Granada, is herewith transmitted for your information.

I am, &c.,

HAMILTON FISH.

No. 48.]

No. 59.

Mr. Fish to Mr. Hurlbut.

DEPARTMENT OF STATE,

Washington, October 24, 1871. SIR: I transmit a copy of a letter of the 20th instant, addressed to this Department by David Hoadley, president of the Panama Railroad Company, setting forth the reasons for the failure of that company to pay the subsidy due by them to the Colombian government on the 15th of August. last, and subsequently. The letter also represents that information had been received that that government had directed its attorney general to commence suit against the company on the isthmus for the amount due, and to attach the company's property for double that sum. A clause of the contract of the company is quoted to show that such a proceeding would be in violation of that instrument.

This Government must presume that, in entering into the contract, the company acted with deliberation, took into consideration both the ability and the disposition of the Colombian government to fulfill its part of the bargain, and its own ability to do the same under any contingencies, however unexpected or adverse. The abstract right of that government to hold the company accountable for any breach of the contract will not be questioned. This Government, however, will expect that if the Colombian government should deem it advisable to hold the company to the literal performance of their part of the contract, that it will itself be guided, in enforcing the penalty, by a strict observance of the terms. If, however, that government should take a more liberal view of the subject, and should cancel the contract of 1867, as proposed by the company, this Government, in view of the large interests of esteemed citizens embarked in the enterprise, would regard that course as a proof of a friendly disposition on the part of Colombia. It is not usual for this Government officially to interfere in matters of contract between citizens of the United States and foreign governments. There is no determination to disregard the rule in this instance. The consid erable public interests involved in the matter may, however, be deemed to warrant you in at least making such informal representations upon the subject as may induce that government to pause in committing any harsh and premature act to the prejudice of the company. This course you will consequently pursue.

I am, &c.,

HAMILTON FISH.

CORRESPONDENCE BETWEEN THE DEPARTMENT OF STATE AND THE COLOMBIAN LEGATION AT WASHINGTON.

No. 60.

Mr. Perez to Mr. Fish.

LEGATION OF THE UNITED STATES OF COLOMBIA, Washington, D. C., February 7, 1871. (Received February 7.) MR. SECRETARY: I have received instructions to solicit the issue of such orders as may be thought necessary, to the end that Colombian vessels may be treated in the ports of the United States to which they may convey merchandise, when the latter does not proceed from any other ports of the said United States in the same ocean, in the same

manner as (are other) American vessels employed in the same trade; that is, "that neither distinct nor higher duties be collected for the tons of the vessel or for its cargo, be the importation made in vessels of the one or of the other country," as is stipulated in article 4 of the treaty of December 12, 1846, between New Granada and the United States.

By said treaty it was settled, as to commerce and navigation, that there should be perfect equality and reciprocity between the two countries, and indeed within the Colombian territory. Merchandise arriving there or going out under the American flag is free from every discriminating duty.

I deel it unnecessary now to enumerate the advantages which the United States have derived, almost exclusively, from the traffic and the transit across the isthmus of Panama since the ratification of the treaty.

I only need say that Colombia now desires to make use of the equality therein stipulated, in order to insure the establishment of a line of steam vessels, to encourage commercial relations between the two countries with reciprocal and increasing benefit.

I have the honor, &c.,

No. 61.

S. PEREZ.

Mr. Fish to Mr. Perez.

DEPARTMENT OF STATE,

Washington, February 8, 1871.

SIR: I have had the honor to receive your note of yesterday, stating that you had received instructions to solicit the issue of such orders as may be thought necessary, to the end that Colombian vessels may be treated in the ports of the United States to which they may convey merchandise, when the latter does not proceed from any other port of the United States in the same ocean, in the same manner as American vessels employed in the same trade. Your note further adverts to the fact that the privilege desired was secured by the treaty between the United States and New Granada of the 12th of December, 1846.

In reply I have to state that, as your request seems to imply an opinion on the part of your government that the treaty adverted to has been definitively terminated, it is deemed advisable to hold the application under consideration until no doubt shall remain upon that point. The 35th article of the treaty stipulates that it shall last for twenty years from the exchange of ratifications, which took place on the 10th of June, 1848. The same article further provides, "Notwithstanding the foregoing, if neither party notifies to the other its intention of reforming any of or all the articles of this treaty, twelve months before the expiration of the twenty years stipulated above, the said treaty shall continue binding on both parties, beyond the said twenty years, until twelve months from the time that one of the parties notifies its intention of proceeding to a reform."

It appears that under date the 23d of January, 1867, General Salazar, then accredited to this Government as envoy extraordinary and minister plenipotentiary of the United States of Colombia, addressed to this Department a note from New York, in which he stated that he had been instructed to set on foot a negotiation for the purpose of renewing the treaty prior to the termination fixed in the 35th article.

The receipt of this note was acknowledged in one from the Depart ment of the 29th of January.

With another note of the 23d of April, 1867, General Salazar transmitted a copy of the changes which his government desired in the treaty, and offered to discuss the subject at such time as might be appointed for that purpose.

It does not appear that any reply was made to the last-mentioned note, or that the discussion proposed by General Salazar took place. There is also nothing on record or on file here to show that the notes of General Salazar referred to were regarded and received as such a ter mination of the treaty as that for which the instrument itself provides. Nor does it appear that the Secretary of the Treasury of the United States has been informed that the treaty is at an end, and, therefore, that the privileges previously enjoyed under it by Colombia in the ports of the United States must be discontinued. Indeed, so far as this Department is aware, those privileges, including the one requested by Mr. Perez, are still enjoyed by Colombian vessels and their cargoes. In any event, before a definitive answer can be given to your application, or your request can be complied with, it will be necessary for you to state that. from your own knowledge, a similar privilege is enjoyed by vessels of the United States and their cargoes in the ports of Colombia.

I avail, &c.,

No. 62.

Mr. Perez to Mr. Fish.

HAMILTON FISH.

LEGATION OF THE UNITED
Washington, February 13, 1871.

STATES OF COLOMBIA,
(Received February 14.)

MR. SECRETARY: In the communication which I had the honor to address you on the 7th instant, it was not my intention to state that, in the opinion of my government, the treaty of 1846 between New Granada, now the United States of Columbia, and the United States of America had become null and void.

On the contrary, in soliciting, as I did, the issue of certain regulations, and in basing this request expressly on the provisions of the treaty, I think I recognized that it is now in force, and I have received no instructions whatever to present any observation against this.

It is, moreover, obvious that when my government thinks proper that any modifications should be introduced into said treaty, it will propose them to that of the United States, as it did in the cases which you have been pleased to mention.

With respect to the manner in which trade is carried on between the two countries, and to the necessity of issuing regulations to cause the observance of the treaty in respect to trade, I think it will be sufficient to state the following facts, and to make the following observations:

American vessels convey goods to the isthmus of Panama, or go there to receive them, and no tonnage duty is there required of those vessels. In Colombia, no duty is required, nor are goods brought to the isthmus by American vessels, or goods which, passing over it, are re-exported, likewise in American vessels, subjected to any detention. These same goods, which are, in reality, imported into Colombia, which pass over fifty miles of its territory, and which are re-exported from it, are con

sidered, as regards the payment of duties in the United States, as if they were only directly transported from one place to another of its territory, and without leaving the same.

Regulations exist in order that goods which, before crossing the isthmus, have paid the proper duty in the United States, may not be obliged, on returning to said United States, again to pay the same duty. Perfect equality and reciprocity as to commerce and navigation having been established between the two countries by the treaty of 1846, it is evident that Colombian vessels have the right to carry on this trade with the same advantages with which it is carried on by American vessels, and across the isthmus of Panama. This trade cannot be included in the only exception which exists to that perfect equality and reciprocity, since it embraces territory of the one country and territory of the other country, and since the benefits which are derived from it proceed as much from the extent and productions of the one, as from the exceptional situation and liberality of the other.

But as the present regulations relative to said trade refer only to goods conveyed in American vessels, in order that this reciprocity may be effective, it is necessary to extend said regulations to goods conveyed in Colombian vessels.

Otherwise, the latter will be unable to carry on said trade, because they will have to take the goods when they have already paid the proper duty in the United States, and will again be obliged to pay the same duty on importing them definitively into the same United States.

Not to extend such regulations to Colombian vessels would be, therefore, to deprive them of the right of engaging in a traffic identical with that which is now carried on between the two countries in American vessels, since without the extension of the regulations there is in reality a double duty imposed on goods. conveyed from one point to another of the United States, crossing the isthmus of Panama in vessels which are not American.

This is a discriminating duty, and therefore a duty which, according to the treaty, cannot be imposed upon the cargoes of Colombian vessels. If there had previously been Colombian vessels engaged in this trade, there is not the least doubt that, in accordance with the treaty, the regulations would have been extended to them. But as the effort is now being made to establish them in this trade, on account of the present urgent necessity of reviving commerce between the two countries, a request in accordance therewith is presented. The honorable Secretary perfectly understands the importance of multiplying the means of communication between the two Americas for the best service of their interest and their common aspirations, and he is also aware of the advantages of a new line of steamers, sustained by Americans of skill and experience, like the one which it is proposed to establish between Colombia and the United States, and which may very well be extended to the Antilles, to Central America, and to other nations of South America. With this reply to your note of the 8th instant, I have the honor, &c.,

S. PEREZ.

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