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Statement of United States exports to France of concessional articles, with amounts of duty collected and revenue to be conceded by France.

[Based upon the exports for the fiscal year 1998, United States statistics.]

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Statement of United States exports to France of concessional articles, with amounts of duty collected and revenue to be conceded by France-Continued.

[Based upon the exports for the fiscal year 1898, United States statistics.]

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Statement of United States exports to France of concessional articles, with amounts of duty collected and revenue to be conceded by France-Continued.

[Based upon the exports for the fiscal year 1898, United States statistics.]

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Concession of French duty now temporarily granted and perpetuated by the treaty.

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STATEMENTS AND LETTERS FAVORING

RATIFICATION.

STATEMENT MADE ON WEDNESDAY, JANUARY 10, 1900, BY HON. JOHN A. KASSON, SPECIAL COMMISSIONER PLENIPOTENTIARY OF THE UNITED STATES TO NEGOTIATE CONVENTIONS WITH FOREIGN NATIONS UNDER THE THIRD AND FOURTH SECTIONS OF "AN ACT TO PROVIDE REVENUE FOR THE GOVERNMENT AND TO ENCOURAGE THE INDUSTRIES OF THE UNITED STATES," APPROVED JULY 24, 1897, TO THE COMMITTEE ON FOREIGN RELATIONS OF THE UNITED STATES SENATE.

After the passage of the Dingley bill the State Department sent copies of it to our various legations and embassies abroad for communication to the various governments to which they were accredited. No more than this had been done at the time the President charged me with the duty of negotiating these conventions, and these foreign governments seemed to have given no attention to it.

The condition of commercial feeling in Europe, as I found very soon after undertaking these duties, was exceedingly hostile to the United States. The Dingley bill had produced an effect all over the continent of Europe of exasperation throughout the commercial world, and among the governments as well, to such an extent that one high officer-the premier of the Austro-Hungarian Government-had openly proposed a union of official action against the United States commerce as their only means of protecting their own commercial interests. In that state of feeling, at first, there seemed no disposition anywhere on the continent of Europe or in the governments of South America to take any steps under the reciprocity clauses of the bill. The first movement was a tentative movement by the British for their colonies, which, however, I will speak of when your committee comes to those colonial treaties.

Then the French, who have a different tariff system from the rest of Europe, concluded to open a negotiation, and Mr. Patenôtre came to me with a proposition for the whole 20 per cent reduction provided by the fourth section of the tariff bill in exchange for the whole minimum tariff of France on our goods. I went over the figures with the representative of the Treasury Department and found that I could not entertain that proposition in its length and breadth, and after serious discussion that negotiation was suspended-halted at least, and continued halting until a change in the embassy was made, and Mr. Cambon came here as ambassador. Then it was again taken up on the

basis which I suggested of a moderate reduction along the line of specific French articles in exchange for their grant of the minimum tariff. Here I ought to say to you who may not have looked into the matter that the French tariff system is peculiar. It is the only country which has such a one, and it has certain advantages which deserve the consideration of our legislative authorities at the proper time. They have a general tariff which applies to all the world, and is, as a rule, highly protective. They have another scale, called the "minimum tariff," varying from 15 per cent to as much as 100 per cent reduction below the general tariff, and according to articles. On certain articles the tariffs are identical; and they also have a free list. Their free list embraces, especially of our interests, raw cotton and tobacco, the latter of which is a Government monopoly, and the raw cotton is introduced free because it is a very important element of their manufacturing industries.

As I said, a few articles are identical as to the general and the minimum tariffs, but on manufactured articles there is usually a very marked difference in the two rates. They give their minimum rate to other nations for a consideration only. This system has existed in France for many years, and in the course of these years Great Britain, Germany, Belgium, Russia-in fact, all the countries of Europe except Portugal, I believe-have acquired the minimum tariff, with the result that the imported manufactures of France have been chiefly supplied by the continental countries of Europe and by England. She imports a very large amount of manufactured goods-speaking generally, over $100,000,000 in value. Great Britain, for example, supplies, taking the last reported year, $43,000,000 to France, and Germany $31,000,000 in round numbers, while we supplied only about $350,000,000. That is to say, we have hardly entered with manufactured goods into the French market, being shut out by differential rates of duty. It is a market of 40,000,000 of people-the treaty covers Algiers also-and, in the main, the most intelligent consumers, and the most advanced in the works of civilization in Europe, as well as a people who pay for what they buy. Of course, those countries having the minimum rates of duties have supplied these vast millions of manufactures.

It was clear to me that here was an opening for the development of our commerce in comparison with which the commerce of semicivilized peoples was of little consequence. Our people had written me that they could compete if they could only get in on the same terms. For example, a large chemical company of New York which manufactures sulphate of copper, which is used all over France on their vines, had written me that they could compete successfully with the manufacturers of other countries now supplying France, but that the difference of duties shut them off. I have letters from them which are very interesting, and I use the following to illustrate the condition of hundreds of our industries, affected by this difference of 20 to 40 or 50 per cent between the general and the minimum tariff. These letters are as follows:

Hon. JOHN A. KASSON,

Special Commissioner Plenipotentiary,

Department of State, Washington.

47 CEDAR STREET, New York, November 6, 1897.

DEAR SIR: We have your favor of the 5th instant, inquiring what we mean by the discriminating duty on American sulphate of copper imported into France and asking for some statistics.

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