Hall to Presidential Palace , San José , May 22, 1883 . Let it be executed. P. FERNANDEZ, July 25, 1884

No. 26. Mr. Hall to Mr. Frelinghuysen.

Sir: In May, 1883, the Costa Rican Congress passed a law making Port Limon, on the Atlantic, a free port for the term often years. Ten months later, the same Congress, without giving any previous notice of its intention, regardless of the foreign interests created, foreign capital invested, and foreign enterprises undertaken under the inducements held out by that act, repealed the law and established the former tariff upon imports. I inclose copies and translations of both decrees.

I inclose also an extract from a letter from Mr. Consul Morrell, with its inclosure from a well-known American who has large interests in that country. From these it appears that the publication and execution of the act of repeal were simultaneous, the Government commencing at once to levy duties on goods imported under the assurances of a free entry.

It appears also that the principal commercial interests of Limon are American; that two merchants of the place are now abroad making purchases of merchandise, in the full faith that it was to be a free port for ten years; that, knowing nothing of the change, they will, of course, upon their return, come into conflict with the Government.

Other parties were making preparations to enter into the business of raising fruit for the markets of the United States.

While there may be no doubt as to the right of the Costa Rican Congress to revoke the law referred to, it seems but just that some previous notice thereof should have been given or a reasonable time allowed the interested parties to adjust their business affairs to the new conditions. As the matter now stands it has all the appearance of bad faith on the part of the Government.

In view of these facts, I have deemed it my duty to instruct the consul at San José to receive the protests of our citizens who may be injured in their interests by the action of the Costa Rican Government, and especially those who have imported goods under guarantee of the law now repealed. I have also addressed a communication to the minister for foreign affairs, of which I inclose a copy.

I have, &c.,