Kasson to Evarts, February 10, 1879

No. 26. Mr. Kasson to Mr. Evarts.

Sir: After ten years of trial of a liberal system of regulations for trade across the Austro-German frontier, the two governments concerned have condensed the fruits of this experience in the commercial treaty of the 16th December, 1878. Some of its provisions seem to me especially applicable to our commercial relations with Canada and with Mexico, and some appear quite new. The stipulations are thoroughly reciprocal; and the principle of the “most favored nation” is further extended in this treaty than in any other which has fallen under my observation. Should new commercial arrangements be contemplated by the United States Government, especially with contiguous territories, I venture to believe that a previous examination of these provisions will be advantageous to our negotiations. I therefore transmit to you by this mail an officially published copy of this treaty, and herewith inclose a translation of the same made at this legation.

I take the liberty to call your attention especially to the following provisions:

Touching the wide application of the “most favored nation” principle. (Articles 2, 18, 21.)

Touching premiums and drawbacks, and railway preferences, and other efforts at priority. (Articles 3, 9, 14, 15.)

Touching the free introduction and reproduction of incomplete manufactures to be finished, or advanced, and then returned, a trade which has been very profitable to Germany. (Article 6.)

Touching the prevention of smuggling, and effective arrangements indicated. (Articles 10, 23.)

Disinfection of live-stock railway-wagons. (Article 17.)

Responsibility, of railway direction for violation of locks, seals, &c., covering goods in transit to destination with duties unpaid. (Article 18.)

The reciprocal service of consuls in places where only one nation is represented. (Article 22.)

I also transmit by this mail a copy of the late Austro-Italian commercial treaty for the files of the Department, the same being in French as well as German text.

I have, &c.,

Translation of the Austro-German commercial treaty of the 10th December, 1878.

Sent by same mail the original printed text of same; and double text of Austro-Italian treaty of the 27th December, 1878.