PROTECTION BY UNITED STATES MINISTER OF BRITISH INTERESTS IN BOLIVIA. Sir Julian Pauncefote to Mr. Hay. BRITISH EMBASSY, Washington, April 15, 1899. SIR: I have the honor to inform you that I learn, from a telegram addressed to me by the Marquis of Salisbury, that, according to reports sent by the British vice-consul at Antofagasta, in Chile, a revolution has broken out in Bolivia, and that British lives and property are urgently in need of protection in that country. As there are no British representatives, either diplomatic or consular, in Bolivia, I am instructed to inquire whether your Government would be so good as to instruct the United States minister there to protect British subjects and interests should such protection be necessary, and thereby confer on Her Majesty's Government a favor which would be much appreciated? I have, etc., JULIAN PAUNCEFOTE. No. 1407.] Mr. Hay to Sir Julian Pauncefote. DEPARTMENT OF STATE, Washington, April 16, 1899. EXCELLENCY: I have the honor to acknowledge the receipt of your note of yesterday's date, by which you inform me of the receipt by your Government of advices that a revolution has broken out in Bolivia and that British lives and property are urgently in need of protection in that country. In view of this and of the circumstance that there are no British representatives, either diplomatic or consular, in Bolivia you inquire, in pursuance of the telegraphed instructions of the Marquis of Salisbury, whether this Government will instruct the United States minister there to protect British subjects and interests should such protection be necessary. Minister Bridgman's dispatches have advised me of the outbreak of a revolution in Bolivia about the middle of December last, and of the critical condition of American and other residents of that country, except in La Paz, which he reported as safe for foreigners up to February 10; but two ministers besides Mr. Bridgman-namely, the Brazilian and French representatives-had remained at La Paz, and they had joined in the protection of foreign interests as far as possible. The French minister has subsequently quitted La Paz. By a recent instruction sent by mail Mr. Bridgman was authorized, should such a course appear unavoidable, to assist American citizens to leave the country and to close the legation and to go to a place of safety on the neighboring coast. On January 14 Mr. Bridgman reported that the telegraph line to the coast had been cut and the mails interrupted. Since that date but one telegram had been received from Mr. Bridgman, dispatched February 21 from Mollendo, Peru, to which point it is supposed to have been conveyed by an Indian runner. Under these circumstances there appears to be small chance of direct communication with Mr. Bridgman. I have, however, adopted the safest and probably the speediest means of doing so, and have had pleasure in telegraphing to the United States consular agent at Molfendo to forward to the minister at La Paz an instruction to protect British subjects and interests if necessary, and to notify the Bolivian authorities of his assumption of such protective office. I have, etc., JOHN HAY. Sir Julian Pauncefote to Mr. Hay. BRITISH EMBASSY. Washington, April 17, 1899. SIR: I have the honor to acknowledge the receipt of your note No. 1407, of yesterday's date, informing me that in accordance with the request of Her Majesty's Government, the United States minister in Bolivia has been instructed to undertake such protection of British interests in that country as may be rendered necessary by the recent revolution there and the absence of any British representative. I beg you to accept my thanks for the courtesy and promptitude of your actions in the matter, which I have had much pleasure in bringing to the knowledge of my Government by telegram. I have, etc., Mr. Hay to Mr. Tower. JULIAN PAUNCEFOTE. No. 1460.] DEPARTMENT OF STATE, SIR: Referring to previous correspondence relative to the course of the American minister at La Paz in protecting the interests of British subjects in Bolivia, and particularly with regard to your note of the 17th ultimo on the subject, I have the honor to inform you that the Department has received a dispatch from Mr. Bridgman, our minister at La Paz, reporting that at present there is no need of protection for British subjects in Bolivia as everything is quiet there. I have, etc., Mr. Tower to Mr. Hay. JOHN HAY. BRITISH EMBASSY, Washington, June 11, 1899. SIR: I have the honor to inform you that Her Majesty's Government have received reports from the British legation at Santiago, which show that it is desirable to provide further means of protection for the British subjects residing in Bolivia. You were good enough to instruct the United States minister to protect British subjects in view of the revolution which was recently in progress, and I am instructed by the Marquis of Salisbury to ask that the diplomatic and consular officers of the United States may continue to take charge of British interests until such time as arrangements can be made for the appointment of British consular officers for that purpose. Her Majesty's Government are fully sensible of the assistance already rendered by the United States minister, and I am to express the hope that you will feel no difficulty in acceding to their present request. I may add that my dispatch informing Lord Salisbury of the contents of your note No. 1460, of the 26th ultimo, which stated that everything was quiet in Bolivia, crossed the instructions which I have now the honor to communicate to you. I have, etc., No. 1614.] Mr. Hay to Lord Pauncefote. REGINALD TOWER. DEPARTMENT OF STATE, Washington, November 16, 1899. EXCELLENCY: I have the honor to send you, for your information, and such action as you may deem appropriate, copy of a dispatch' just received from the United States minister at La Paz, in regard to the continued use of his good offices for the protection of British interests in Bolivia during the absence of a representative of Her Majesty's Government. As respects the question of recognizing the new revolutionary Government of Bolivia, Mr. Bridgman has been instructed to enter into relations with it, when it shall appear to be established in control of the machinery of administration and in a position to fulfill its international obligations. At the date of the last dispatches from Mr. Bridgman, October 20, he was deferring action upon that instruction until the constitutional assembly should have convened. By a telegram, dated October 25, I have since learned that General Pando was on that day elected President of Bolivia, and I have little doubt that Mr. Bridgman will have soon carried out the instructions sent him in regard to the recognition of General Pando's government by the United States. I have, etc., JOHN HAY. Lord Pauncefote to Mr. Hay. BRITISH EMBASSY, Washington, November 17, 1899. SIR: I have the honor to acknowledge the receipt of your note of the 16th instant, inclosing a dispatch from the United States minister in Bolivia on the subject of the necessity of some recognition on the part of Great Britain of the new government of General Pando in that country. While thanking you for your courtesy in communicating this dispatch to me, I have the honor to inform you that I have referred the matter to the Marquis of Salisbury. PAUNCEFOTE. I have, etc., 1 Not printed. TAX ON FOREIGN INSURANCE COMPANIES IN THE UNITED STATES. Sir Julian Pauncefote to Mr. Hay. BRITISH EMBASSY, Washington, April 17, 1899. SIR: I have received a dispatch from the Marquis of Salisbury calling attention to the fact that legislation has recently been enacted in certain States of the Union by which a discriminating tax has been imposed upon foreign fire insurance companies as against American companies. Lord Salisbury has received a strong appeal on the subject from the "fire offices committee" in London, who point out that there are twenty-three British fire insurance companies represented in the United States, that not one of them has ever failed to meet its obligations in the United States, and after fifty years of trading, involving transactions of hundreds of millions of dollars, they would now, by the differential impost in question, be called on to pay not only more than the native companies, but more than the companies of other foreign nations, while in Great Britain and her colonies, American insurance companies are free to carry on their business on the same footing as British companies. The inclosed letter from the resident manager of the Liverpool and States Insurance Society (whose chief offices are in New York) gives details as to the legislation enacted by the State of Iowa and that pending in the States of Missouri and Nebraska on this question, and dilates upon the unfavorable position on which the British companies are placed in these States, as regards not only American companies but those of other nations. The treaties in force between Belgium and Switzerland and the United States contain provisions which expressly forbid the levy from the subjects of those countries of any tax or duty higher than that paid by the citizens of the United States, and it is hardly credible that the Government of the United States can wish to place British subjects in a less advantageous position than other foreigners. I have accordingly been instructed to request your serious consideration of this matter, with the view of averting, if necessary, by a treaty "ad hoc," the injury with which the British insurance companies are threatened by the discriminating legislation, of which they legitimately complain. I have, etc., JULIAN PAUNCEFOTE. [Inclosure.] Mr. Eaton to Sir Julian Pauncefote. WASHINGTON, D. C., March 25, 1899. [The Liverpool and London and States Insurance Company, chief office in United States, 45 William street, New York.] SIR: I desire to call your attention to the fact that there are now pending in the legislatures of various Štates of the United States, and amongst others in the States of Missouri and Nebraska, bills imposing a discriminating tax on the premiums of fire-insurance companies of foreign countries, and amongst them the companies of Great Britain are affected. In the greater urgency of the case, your attention is particularly directed to the measures in the States above quoted, in which a distinction is sought to be made between companies of the other States and companies of other countries, the tax sought to be levied on the class last named being much higher. The companies of Great Britain are and have been quite willing to be classed with companies of other States as to taxation, but they protest against action which is harmful to their interests, and which, by an expansion of the principle, might easily be carried to the point of prohibition. Two years since the State of Iowa granted a law imposing a tax of 1 per cent on the premiums of companies of that State, 22 per cent on the premiums of companies of the other States, and 3 per cent on the premiums of companies of foreign countries. This tax was paid by British companies under protest, and litigation is now in progress as to the constitutionality of the act and as to other points, which may in course of time find its way to the United States Supreme Court for final action. We feel unable to wait the result, with its attendant injury to our interests and possibly of danger to us in other States, which might in the interval be equivalent to expulsion, and we now respectfully ask your aid in an appeal to the treaty between the United States and Great Britain, claiming that whilst American fire and life companies enjoy and have enjoyed complete liberty of commerce in England reciprocal liberty of commerce is not enjoyed in this country by companies of Great Britain in the State of Iowa, and that restriction on this liberty is sought to be imposed by some other States, and amongst them the States of Missouri and Nebraska. Your obedient servant, H. W. EATON, Mr. Hay to Mr. Tower. Resident Manager. No. 1422.] DEPARTMENT OF STATE, SIR: I have the honor to acknowledge the receipt of the note which the ambassador addressed to me on the 17th instant, in reference to legislation enacted or proposed to be enacted in various States of the United States unfavorable to foreign insurance companies. It is stated that the legislation already enacted by the State of Iowa and that pending in the States of Missouri and Nebraska is of a discriminatory character against British companies, not only in respect of American companies, but those of other nations. The Department is not informed of the phraseology of the Iowa law or of the pending legislation in Missouri and Nebraska, but it assumes that Sir Julian's reference to discrimination against British companies in favor of companies of other foreign countries is not based on any express provisions of the said act and proposed acts, but is based rather on existing treaty stipulations of the United States with Belgium and Switzerland, which provide for the equality of treatment of their citizens in the matter of imposts. Legislation such as that enacted by the State of Iowa is beyond the control of the executive branch of the General Government, and even did this legislation contravene any existing treaty between the United States and Great Britain (which is not made to appear), the remedy would lie in an appeal to the courts of law. This Department had, some time previous to the receipt of Sir Julian's note, called the attention of the governors of the States in which the legislation in question is said to have been adopted, or to be pending, to the violation of certain treaty stipulations made by the |