ALLEN, Collector-General to Simon W. Kaai , H. H. M, May 3, 1879

Sir: I am in receipt of your excellency’s communication, and would reply, that soon after the treaty went into effect some few of the importers took the ground that all articles of cotton, whether made up or in piece “if of the growth, manufacture, or produce of the United States” should be admitted free under the second article of the treaty. I then decided that nothing but piece goods could be admitted free. Any article made up must pay duty.

A few protests were filed and then the matter rested until November 15, 1877, when the minister of foreign affairs addressed me a letter, asking if any protests had been made, or if any ruling had been made on this point. I replied that the late minister of finance, Mr. Walker, had given me verbal instructions to the effect that the cabinet had decided that all cotton clothing, or cotton goods, made up, must pay duty. This seemed to be so well understood by the importers that none of them, to my knowledge, did anything more than file their protest.

The commissioners who negotiated the treaty said, that although the “words other than ready-made clothing” were not expressed here as in regard to wool and manufactures of wool, or textile manufactures, still such was the understanding and intention, that in neither case could anything other than piece goods he admitted free, or blankets, bed-spreads, and shawls, articles that are made at once, the same as apiece of calico or wool-pants stuff.

I can see no reason why cotton clothing should be admitted free and all other made dutiable. It seems as if the treaty showed plainly that made-up goods, in either cotton, wool, or textile fabrics, should not be free by its stipulations.

I have, &c.,