Your communication has been laid before the President, and by him considered.

The advantages of your country to navigators in the Pacific, and in particular to the numerous vessels and vast tonnage of the United States frequenting that sea, are fully estimated; and just acknowledgments are due to the government and inhabitants of the islands for their numerous acts of hospitality to the citizens of the United States.

The United States have regarded the existing authorities in the Sandwich Islands as a government suited to the condition of the people, and resting on their own choice; and the President is of opinion that the interests of all commercial nations require that that government should not be interfered with by foreign powers. Of the vessels which visit, the islands, it is known that a great majority belongs to the United States. The United States, therefore, are more interested in the fate of the islands, and of their government, than any other nation can be ; and this consideration induces the President to be quite willing to declare, as the sense of the government of the United States, that the government of the Sandwich Islands ought to be respected; that no power ought either to take possession of the islands as a conquest, or for the purpose of colonization; and that no power ought to seek for any undue control over the existing government, or any exclusive privileges or preferences with it in matters of commerce.

Entertaining these sentiments, the President does not see any present necessity for the negotiation of a formal treaty, or the appointment or reception of diplomatic characters. A consul, or agent, from this government will continue to reside in the islands. He will receive particular instructions to pay just and careful attention to any claims or complaints which may be brought against the government or people of the islands by citizens of the United States, and he will also be instructed to receive any complaint which may be made by that government, for acts of individuals (citizens of the United States), on account of which the interference of this government may be requested, and to transmit such complaint to this department.

It is not improbable that this correspondence may be made the subject of a communication to Congress; and it will be officially made known to the governments of the principal commercial powers of Europe.

I have the honor to be, gentlemen, your obedient servant, DANIEL WEBSTER. Messrs. TIMOTEO HAALILIO and WILLIAM RICHARDS, Washington.

CONSTRUCTION OF THE TREATY BETWEEN THE UNITED STATES AND PORTUGAL, RESPECTING. DUTIES AT THE CUSTOM HOUSE.

Mr. Figaniere e Morao to Mr. Webster.--[corx.]

PHILADELPHIA, November 18, 1841.

THE undersigned, a member of her majesty's council, and minister resident of Portugal in the United States of America, by direction of his government, has the honor to address himself to the Honorable Daniel Webster, Secretary of State of the United States, in order to lay before him, for the consideration of the American government, and its consequent action at the next session of the legislative body of the Union, the following observations respecting the bill concerning duties and drawbacks, reported to the House of Representatives at the late session of Congress.

The attention of her majesty's government was called to the bill in question in consequence of its purporting to lay aside the principle heretofore and for a long period followed in the United States, of imposing specific duties on wines and spirituous liquors, on their introduction into this country, and substituting an ad valorem duty, which could not be viewed with indifference by the government of Portugal, inasmuch as the proposed change, which has since been effected by the subsequent passage of said bill in both Houses, and its approval by the President on the 11th of September last, is certainly highly detrimental to the consumption of Portuguese wines in this country, and consequently prejudicial to the commercial intercourse of the two nations, which has so shortly ago, and with reciprocal satisfaction, been fixed upon a liberal basis in the treaty signed at Lisbon on the 26th of August, 1840.

... When that treaty was under negotiation, and at its termination, the duties on wines (the principal export of Portugal) were then, and continued to be, specifically levied in the United States; nor was it at that time intended, to the knowledge of the queen's government, that the system then followed would so soon and unexpectedly be changed, to the great injury of the Portuguese staple. Moreover, it is argued, the operation of the act in question infringes, if not the letter, the spirit of the said treaty, which violation was surely never contemplated by either the legislative or executive branch of the United States government. Nevertheless, the fact appears evident, when it is taken into consideration that the wines of Portugal, from their nature, and peculiar, unavoidable circumstances,

can only reach this country at a comparatively higher cost. than the wines of other countries, and of course be subjected to a higher duty, according to the act of Congress, than the like wines of those other countries, and consequently contrary to the provision of the 3d article of the treaty of 1840, which would not be the case if the duty were specific, as before the passage of the act.

In order to show the different effects of the two modes of imposing duties on wines, the undersigned begs to call Mr. Webster's attention to the following illustration of them. A pipe of wine from the Mediterranean, Spain, or any other country, reaches a port in the United States at a cost (let it be supposed) of 30 cents the gallon, and a like pipe of wine from Portugal costing say 38 cents the gallon. If the duty be specific (for instance, 15 cents), they will both be subjected to the same, and neither pay a higher or other duty than the other; for fifteen cents per gallon, and no more, would be levied upon both pipes. Not so, however, according to the act of the 11th of September last, which imposes twenty per cent. ad valorem. The Spanish, or other wine will pay only six cents per gallon, while from the like wine of Portugal will be exacted 7% cents per gallon, which, de facto, operates as a discriminating duty against the Portuguese wines, contrary to the stipulations of the treaty between the two countries.

The undersigned will not, on this occasion, multiply arguments to prove the injurious effect the act referred to will have upon the wines of his country, and upon its commerce generally with the United States, should the present mode of levying the duties upon wines and spirituous liquors be continued. He flatters himself that the plain statement now offered, together with the verbal observations he very lately had the honor to submit to Mr. Webster upon the same subject, will convince him of the fitness of the alteration proposed, in order that the treaty referred to be not virtually rendered void, but available, as the two governments. intend, for the benefit both of Portugal and the United States.

The minister of Portugal avails himself of this opportunity to reiterate to the honorable Secretary of State the assurance of his distinguished consideration and esteem.

DE FIGANIERE E MORAO.

Hon. DANIEL WEBSTER, Secretary of State of the United States.

Mr. Webster to Mr. Figanierè e Morao.

DEPARTMENT OF STATE, Washington, February 9, 1842. The undersigned, Secretary of State of the United States, has the honor to acknowledge Mr. De Figanièrè e Morao's. note of the 18th of November, and has given to it the consid

eration due to its importance, and to the friendly relations happily subsisting between the two governments.

The undersigned regrets that the government of Portugal should suppose that it has reason to complain, in any manner, of a law of the United States as being prejudicial to Portugal, or at variance with the amity and good-will subsisting between the two countries, and especially as inconsistent with the treaty obligations of the United States.

The law complained of was enacted on the 11th day of September, 1841; and its main provision was, to lay a duty of 20 per cent. ad valorem on all such articles as were at that time free, or on which the duty was less than that rate, with certain exceptions. The wines of Portugal not being within the exceptions, and being subject at that time only to a specific duty, may fall under an increased charge or duty by the operation of this law.

The third article of the treaty subsisting between the United States and Portugal is in these words:

"No higher or other duties shall be imposed on the importation into the kingdom and possessions of Portugal of any article, the growth, produce, or manufacture of the United States of America; and no higher or other duties shall be imposed on the importation into the United States of America of any article, the growth, produce, or manufacture of the kingdom and possessions of Portugal, than such as are or shall be payable on the like article, being the growth, produce, or manufacture of any other foreign country.

"Nor shall any prohibition be imposed on the importation or exportation of any article, the growth, produce, or manufacture of the United States of America, or of the kingdom and possessions of Portugal, to or from the ports of the said kingdom and possessions of Portugal, or of the said States, which shall not equally extend to all other foreign nations.

"Nor shall any higher or other duties or charges be imposed, in either of the two countries, on the exportation of any articles to the United States of America or to the kingdom of Portugal, respectively, than such as are payable on the exportation of the like articles to any other foreign country.

"Provided, however, that nothing contained in this article shall be understood or intended to interfere with the stipulation entered into by the United States of America, for a special equivalent, in regard to French wines, in the convention made by the said States and France on the fourth day of July, in the year of our Lord one thousand eight hundred and thirtyone, which stipulation will expire and cease to have effect in the month of February, in the year of our Lord one thousand eight hundred and forty-two."

Mr. De Figanierè e Morao thinks that the provision of this article is interfered with by the above-mentioned act of Congress. He illustrates his own view of the subject by putting a case in the following form:

"A pipe of wine from the Mediterranean, or Spain, or any other country, reaches a port in the United States at a cost (let it be supposed) of 30 cents the gallon, and a like pipe of wine from Portugal costing 38 cents per gallon. If the duty be specific, say 15 cents, they will both be subject to the same, and neither pay a higher or other duty than the other; for fifteen cents per gallon, and no more, would be levied on both pipes. Not so, however, according to the act of the 11th of September last, which imposes 20 per cent. ad valorem. The Spanish or other wine will pay only six cents per gallon, while from the like wine of Portugal will be exacted 70 cents per gallon, which, de facto, operates as a discriminating duty against the Portuguese wine, contrary to the stipulations of the treaty between the two countries."

6

Before proceeding to consider the argument and illustration thus advanced, the undersigned avails himself of the opportu nity of stating to Mr. De Figanierè e Morao, that the language in the third article of the treaty between the United States and his government is of the same import with that used in most other treaties of the United States with foreign powers, and identical with that employed in some of them; and that no complaint has ever been made to this government by the governments with whom such treaties have existed of any injury, injustice, or want of strict compliance with treaty stipulations on any such ground as has been now taken by the Portuguese government. It will be at once obvious, therefore, to Mr. De Figanierè e Morao that the government of the United States must take such a view of the question as it can maintain not only in regard to Portugal, but many other powers also.

The interdict of the treaty is,

"No higher or other duties shall be imposed on the importation into the United States of America, of any article, the growth, produce, or manufacture of the kingdom and possessions of Portugal, than such as are or shall be payable on the like article, being the growth, produce, or manufacture of any other foreign country.

The article on which the duty complained of is laid is wine; and the duty laid on Portuguese wine is exactly the same, in terms, as that laid on the like article (except as excepted in the law) coming from other countries. In other words, all wines fall under the same duty of 20 per cent. ad valorem. In terms, therefore, the law is clearly within the treaty.

But Mr. De Figanierè e Morao thinks it not in conformity