census, or in the absence of a census, by agreement between their several Governments.

Fourteenth. That the railroad should be declared forever neutral for the purpose of securing freedom of traffic.

Fifteenth. That the approval of the surveys, the terms of the proposals, the protection of the concessionaires, the inspection of the work, the legislation affecting it, the neutrality of the road, and the free passage of merchandise in transit, should be (in the event contemplated by article eighth) the subject of special agreement between all the nations interested.

Sixteenth. That as soon as the Government of the United States shall receive notice of the acceptance of these recommendations by the other Governments it shall invite them to appoint the commission of engineers referred to in the second article, in order that it may meet in the city of Washington, at the earliest possible date.

The report of the Committee on Railway Communications was therefore adopted as submitted.

RECIPROCITY TREATIES.

REPORT OF THE MAJORITY OF THE COMMITTEE on CUSTOMS UNION.

[As submitted to the Conference February 28, 1890.]

The Committee on Customs Union has made a careful study of the question submitted to its consideration by the International American Conference, concerning the establishment of a Customs Union among the several nations of this continent.

As generally understood, the term "Customs Union" means the inclusion of several nations in a single customs territory, so that the nations forming the union collect. import duties on foreign goods under substantially the same tariff laws, divide the proceeds thereof in a given proportion, and reciprocally receive as domestic goods, and therefore free of duty, their respective natural or manufactured products.

The acceptance of this plan would involve, as a condition precedent, a change in the fundamental laws of the countries adopting it. Even were they disposed to make such changes there would still be almost insuperable difficulties to overcome; as, for instance, that which would be encountered in fixing the basis of representation of the several nations in an international assembly empowered to frame a common tariff and to amend it in the future. The American Republics differ so much in territorial extent, in population, and in national wealth, that, if these things. should be taken as the basis of representation in such assembly, the small States would not be in a position adequately to protect their interests; and if all the nations were to be admitted as sovereigns, to wit, on an equal footing, the interests of the larger nations would not be adequately guarantied. It might be necessary, to obviate this difficulty, to create two bodies, one representing the population and wealth, and the other the States, in the manner in

which a like problem was solved in the Constitution of the United States of America. But this step would require a partial sacrifice of the national sovereignty of the American nations, and more radical changes in their respective constitutions than the committee believes that they are willing to accept.

If by Customs Union is meant free trade between the American nations as to all their natural or manufactured products, which is, properly speaking, unrestricted reciprocity, the committee believes it is in principle acceptable, because all measures looking to the freedom of commerce must necessarily increase the trade and the development of the material resources of the countries accepting that system, and it would in all probability bring about as favorable results as those obtained by free trade among the different States of this Union.

But at the same time the committee believes that such a union is at present impracticable on a continental scale, because, among other reasons, the import duties levied on foreign trade constitute the main source of revenue of all the American nations, and such of them as are not manufacturing countries would thus lose more or less of such revenue, on which they depend in a great measure to defray their national expenses; while the manufacturing countries, such as the United States of America, would have to abandon, at least in part, the protective policy which they have adopted to a greater or less extent, and they do not seem yet prepared for such a change. Furthermore, a reciprocity treaty which is mutually advantageous between two contiguous countries might prove onerous if extended to all as a continental system, especially as the products of many of the American republics are identical in kind. Therefore, while these obstacles are in the way it seems premature to propose free trade among the nations of this hemisphere.

But while the committee does not think that it would be easy to attain at once to unrestricted reciprocity, it does believe that that end should be approached by gradual steps. The first and most efficient step in that direction is the negotiation of partial reciprocity treaties among the

American nations, whereby each may agree to remove or reduce the import duties levied by it on some of the natural or manufactured products of one or more of the other nations, in exchange for similar and equivalent advantages; for, if the mutual concessions were not equivalent, the treaties would soon become odious, could not last more than a limited time, and would wholly discredit the system. If, after this had been tried for some time, the results should be satisfactory, as is to be expected, the number of articles on the free list might be enlarged in each case, from time to time, until, after the lapse of a few years, when the development of the natural elements of wealth should have enabled each nation to obtain or increase its revenues from domestic sources, unrestricted reciprocity or a free trade among some or all of the American nations should at last be attained.

Therefore the committee proposes:

To recommend to such of the Governments represented in this Conference as may be interested in the concluding of partial reciprocity treaties of commerce to negotiate such treaties with one or more of the American countries with which it may be to their interest to make them, upon such terms as may be acceptable in each case, taking into consideration the special situation, conditions, and interests of each country, and with a view to the promotion of the common welfare of all.

J. G. DO AMARAL VALENTE.
M. ROMERO.

CARLOS MARTINEZ SILVA.

H. GUZMAN.

N. BOLET PERAZA.

J. B. HENDERSON.

REPORT OF THE MINORITY.

WASHINGTON, February 26, 1890.

To the President of the International Anerican Confer

ence:

SIR: The committee whose duty it was to inquire into the subject of a Customs Union between the nations of

America has been unanimous in advising the honorable Conference to reject the idea; but differences of opinion, both in regard to the form of the report and to the recommendation which the majority has felt it to be their duty. to make as a substitute, compel the undersigned to express their views separately. For this reason, they have the honor to submit, together with this communication, the draft of the resolution which they recommend the honorable Conference to pass, and at the proper time they will have the honor to express themselves orally in support thereof.

With feelings of the most distinguished consideration, the undersigned subscribe themselves

Very respectfully,

JOSÉ ALFONSO.
ROQUE SAENZ PEÑA.

RECOMMENDATION.

Resolved, That the proposition of a Customs Union bebetween the nations of America be rejected.

DISCUSSION.

SESSION OF MARCH 15, 1890.

THE SECOND VICE PRESIDENT in the chair. The order of the day is the debate on the report of the Committee on Customs Union, and both Messrs. Henderson and Saenz Peña, delegates, the one from the United States, and the other from the Argentine Republic, have asked the floor. The discussion upon this subject will proceed; but as it is probable that the chairman will desire to take part in the debate he will have to call to the chair the Honorable Delegate whose turn it is to preside.

Mr. VELARDE, the Delegate from Bolivia, took the chair, ordered the Secretaries to read in Spanish and English the conclusions of the majority and minority