H ■HHHHH HI HL HHHnnHH HflflRHnMMmHmBiBl ,*' *0 5 4 o A^* ^•^ v ^0 58th Congress, 1 HOUSE OF REPRESENTATIVES. f Document 3dSessio?i. I \ No. 245. PROMOTION OF TRADE INTERESTS. MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING LETTER OF ACTING SECRETARY OF STATE LOOMIS WITH REPORTS FROM DIPLOMATIC AND CONSULAR OFFICERS. January 19, 1905.— Message and accompanying papers ordered printed and referred to Committee on Foreign Affairs. WASHINGTON: GOVERNMENT PRINTING OFFICE 1905. ^ MESSAGE FROM THE PRESIDENT OF THE UNITED STATES. To the Senate and House of Representatives : I transmit herewith a communication from the Acting Secretary of State, accompanied by reports from the diplomatic and consular officers, upon the feasibility of regular cooperation between the two branches of our foreign service for the better promotion of American industry and trade. Basing his conclusions upon the views ex- pressed in these reports, the Acting Secretary recommends that pro- vision be made for six special agents, with the diplomatic rank and title of commercial attache, to be sent abroad to make practical trial of the proposed plan; to report to the Department of State conditions existing in different countries which might suggest modi- fications or changes in the general scheme; to prepare, for the De- partment of Commerce and Labor, reports upon commerce and manufactures, or upon kindred topics, of a more exhaustive and comprehensive character than is ordinarily obtainable at present; and to visit consulates, examine their workings, and suggest such changes, either to the consular officers or to the Department of State, as would tend to the general improvement and strengthening of the service. It is proposed that these agents shall be chosen primarily for their expert knowledge, but shall be not merely specialists, except for par- ticular investigations that might from time to time be required, but practical men of affairs, with the experience best suited to fit them for their executive duties. It is suggested that the consular service might supply the best type of agents desired, and that, for this reason, and also because of the incentive to merit which would thus be provided, appointments should be made preferably from among those consular officers who have demonstrated their special fitness and capacity. It will, in my opinion, be found upon examination that, while the measure proposed is a modest and more or less tentative one, in- volving comparatively slight expense, it promises important and far- reaching consequences in the judicious strengthening of our whole foreign service in the interest of trade and the gradual development of capacities in it, but imperfectly available as yet, to make it fully adequate to the demands of our productive energy as a nation. Agriculture in the . United States has long been dependent for its prosperity upon the demand from abroad for its surplus product, and of late years, our manufacturing industries have found that they were outstripping the capacity of even our enormous home market, and are now looking more and more to foreign consumption for relief from accumulating stocks. According to an estimate of the Depart- 4 PROMOTION OF TRADE INTERESTS. ment of Commerce and Labor, our exports of manufactures in the calendar year 1904 " will not only exceed the highest figures of any earlier year, but may probably pass the $500,000,000 line, as against 434 millions in the high-record year, the fiscal year 1900. 151 mil- lions in 1890. 103 millions in 1880, 68 millions in 1870, and 40 mil- lions in 1860/* The magnitude and steady growth of this export movement from our workshops and factories are such as to suggest the grave importance of providing it with all the official apparatus necessary to its full and free development. It is generally admitted that, in recent years, the consular service, whatever may be its defects of system, has developed a commercial utility which has been of great practical value. It would be most regrettable, however, if this improvement, which has been brought about by the zeal and energy of individual consuls, rather than by the efforts of the service as a whole, and also, to a large extent, by the special direction of the Department of State, should be accepted as fully satisfying even present requirements, not to speak of the pros- pective demands of a rapidly expanding commerce. For this reason, I cordially commend to the consideration of the Congress 'the recom- mendations of the Acting Secretary of State, looking to the gradual systematizing and equipment of the whole foreign service, by simple and inexpensive means, as an auxiliary responsive at all points to what may reasonably be expected of it by the great industrial and commercial interests which are so deeply concerned in enlarging their share of the world's trade. In view of the interest and importance of the subject to the public, and especially to the business community, I also suggest that authority be given for the printing of a special edition of 5,000 copies of the Act- ing Secretary's letter, together with the appended reports from diplo- matic and consular officers, of which 2,000 copies shall be for distribution by the Department of State. Theodore Koosevelt. White House, Washington, January 18, 1905. LETTEK FROM THE ACTING SECRETARY OF STATE. Department of State. Washington. January 18, 1905. The President : I have the honor to submit for your consideration the advisability of action for combining utilities, more or less latent as yet in our diplomatic service, with those which have been so sig- nally demonstrated by the consular officers, for the promotion of American industry and trade. The development of official facilities for extending foreign commerce has long engaged the earnest effort of this Department, and improvements have been effected from time to time in the collection of trade intelligence from abroad and in the character of the services rendered by consuls to the business interests of the country, which are now familiar to the public. The division of duties, which was effected by the transfer. July 1. 1903, of the work of publishing and distributing the reports of consuls from the Depart- ment of State to the Department of Commerce and Labor, leaving to the former Department, in cooperation with the latter, the general control and direction of the consular officers in the collection of com- mercial and industrial data, has naturally concentrated the energies of the Department of State upon the single object of raising to the highest point of efficiency the machinery for supplying our manu- facturers and merchants with information as to conditions in other countries which tend to advance or to hinder the sale of our surplus products. In order that the Department of Commerce and Labor may fully justify the expectations which prompted its creation, by becoming the chief vehicle of information to the business public as to the latest developments in trade and industry, not only in our own country, but throughout the world, it has seemed to the Department of State that, being responsible for the efficiency of our foreign representatives, both consular and diplomatic, as instruments of trade expansion, and in view of its long experience in directing them to that end, it was incumbent upon it to take steps, not merely to meet the immediate needs of the new Department, but to anticipate, and as far as possible, provide for its developing requirements. The interdependence of the two Departments in the successful pros- ecution of the work assigned to them in common and the importance of liberal reciprocity of action between them are made clear by refer- ence to the legislation defining their respective duties in the premises. Section 11 of the act of February 14, 1903, reads : A person to be designated by the Secretary of State shall be appointed to formulate, under his direction, for the instruction of consular officers, the requests of the Secretary of Commerce and Labor: and to prepare from the dispatches of consular officers, for transmission to the Secretary of Commerce and Labor, such information as pertains to the work of the Department of Com- merce and Labor ; and such person shall have the rank and salary of a chief of bureau, and be furnished with such clerical assistants as may from time to time be authorized by law. b PROMOTION OF TRADE INTERESTS. The final paragraph of the act approved March 3, 1903, making appropriations to supply deficiencies in the appropriations for the fiscal year ending June 30, 1903, etc., under the heading " Department of State,- ' is in part as follows : To enable the Department of State to comply with the requirements of section 11 of the act to establish the Department of Commerce and Labor, approved Feb- ruary 14, 1903 : Chief of Bureau, .$2,250, etc. Under the authority conferred by the foregoing enactments, and after consultation with and assent of the Department of Commerce and Labor, a bureau, with the name " Bureau of Trade Eelations," was established in the Department of State, and this Bureau has, since the 1st of July, 1903, not only performed the duties prescribed by law, with the result that the collection and transmission of consular reports for the Department of Commerce and Labor have proceeded smoothly and expeditiously, but has endeavored in other ways to second the efforts of that Department to broaden the channels of commercial in- formation and to present it to the public with the utmost prompti- tude. The Bureau, in other words, has been made to interpret as fully as possible what was evidently the intent of Congress, viz, that while authority over consular officers was to be reserved to the Depart- ment of State, which is necessarily the only channel of communica- tion with the foreign governments to which consuls are accredited, this authority was to be exercised to the fullest extent, compatible with the maintenance of friendly relations with those governments, to meet the requirements, present and prospective, of the Department of Commerce and Labor. It was felt, moreover, that the perform- ance of the mere letter of the law was not sufficient to discharge the obligation of the Department of State to the business interests of the country, but that, guided by the experience of many years in pro- curing and publishing commercial and industrial data from abroad, it should so direct the consular corps and other sources of information as to make them fully responsive to the demands of our rapidly aug- menting industries. In pursuance of this object, steps were taken, immediately upon the transfer of the publication of consular reports to the Department of Commerce and Labor, to provide that Department with all com- mercial and industrial reports from diplomatic officers, as well as from consuls. There is no specific requirement of law for this service, section 11 of the act of February 11, 1903, providing only for the transmission of consular reports, but the Department of State had become so impressed, during the period of its control of the publica- tion as well as the collection of commercial data, with the value of contributions, even though but occasional, and usually voluntary, from embassies and legations, that it felt they should continue to be made promptly available for the business community. The possibly further uses of the diplomatic service on behalf of vdiat promised to be the constantly broadening work of the Depart- ment of Commerce and Labor naturally presented themselves in the consideration of means to render the State Department's instru- mentalities as efficiently progressive and modern as possible. In re- cent years, the Department had noted so many instances of valuable service to our trade and industry by zealous heads of embassies and legations, or by the secretaries, that it seemed to it to be at least PROMOTION OF TRADE INTERESTS. Y worth an inquiry as to whether such service might not be systema- tized and to some extent coordinated with similar work by the con- sular corps. A proposition of this sort, being in the nature, ap- parently, of an innovation, might, it was perceived, meet with objec- tion, on several grounds. Chief among these, it was anticipated, were : 1. The danger of impairing the dignity and usefulness, in its or- dinary functions, of the diplomatic office, by identifying it too closely or too openly with commercial activities which might excite the jealousy of our trade rivals among the nations. 2. The danger of conflict between the consular and diplomatic of- ficers, if their duties were confused, with the oossible result of im- pairing the initiative and zeal of the individual consul, which have, admittedly, been of much benefit to American industn 7 . 3. Additional expense to the Government, without guaranty of suf- ficient returns. Having duly weighed these and other possible objections, the De- partment reached the conclusion that they were not sufficient to dis- courage further consideration, and in order that it might have the benefit of the views of those immediately concerned it instructed the diplomatic officers, under date of July 29, 1904, to report upon the subject, and in a circular of August 4 following, asked the consular officers for their opinions. The fact of the inquiry and its purpose w T ere also communicated to the Secretary of Commerce and Labor, and it w T as stated that the reports in reply would doubtless provide the basis for the intelligent prosecution, in concert with his Department, of the object sought, should it be found to be feasible. Copies of the letter to the Secretary of Commerce and. Labor, of his reply, and of the instruction to diplomatic officers and the circular to consuls will be found in an appendix to this report, prefacing the re- sponses to both instruction and circular. In the instruction to diplomatic officers, the Department sought to make clear the fact that it was no part of its purpose to do more than raise the question whether the special advantages enjoyed by the em- bassies and legations, located as they are at the capitals of nations and in close touch with all the official centers of information, might not be utilized to complement and make more accurate, as well as more comprehensive, the admirable work on behalf of American com- merce and industry which is being done by our consuls in nearly all the important trade regions of the world. Care was taken, it was thought, to aA^oid asking of the diplomatic officers the assumption of any new duties inconsistent with the proprieties of their positions, or indeed any duties essentially different from such as some of them are already performing with great acceptability to the Department and with generally recognized benefit to our business interests. The powers of initiative and independence of action of consular officers, within their proper bounds, were also, it was believed, fully safe- guarded. On these points, the instruction to embassies and legations reads : Would it be practicable for you to transmit to the consular officers in the country to which you are accredited instructions from the Department of State, from time to time, for particular inquiries, noting in your dispatch of trans- mission any suggestions that may occur to you, from your sources of information 8 PROMOTION OF TRADE INTERESTS. at the capital, which would facilitate the inquiry or help to make it more com- prehensive or more exhaustive? If the consular officers should be directed to transmit their answers to such instructions through you, could you undertake to have their reports revised, with annotations indicating errors of fact or judgment, or portions to* be elimi- nated as likely to give offense or to cause you embarrassment in your diplomatic capacity ? You will appreciate the fact that, to prevent friction with the consular corps and to preserve the spirit of initiative, which is one of the most valuable fea- tures, the Department must reserve the right to determine whether a report shall be amended or suppressed, in whole or in part, and that the annotations made by diplomatic officers are for its guidance in reaching a decision. The Department would always appreciate the fullest complementary information from an embassy or legation, whenever a report or a series of reports seemed to be defective or misleading. It is to be understood that the Department would continue to communicate directly with consular officers as to matters pertaining exclusively to their districts. The embassies and legations were also asked to state whether there was such cooperation as that outlined in the instruction between the diplomatic and consular services of the countries to which they were accredited, and whether those countries had any commercial or in- dustrial attaches. If they had such attaches, information as to their duties, diplomatic status, pay, etc., w T as requested; also an expression of opinion as to whether similar attaches w r ould be useful for the United States. The replies to this instruction, together with the views of the consu- lar officers, are appended in order that, if it be deemed advisable to bring the matter to the attention of Congress, the considerations which suggest themselves to both branches of our foreign service may be given full expression. The reports have been arranged in geo- graphical groups, in the order of relative importance of the great trade divisions, so that a comprehensive view of the conditions in each may be obtained. As was to have been expected from so large a body of officials scat- tered all over the world and affected by widely differing conditions, a great variety of opinions and suggestions is presented, but it is encouraging to the Department's general purpose to be able to state that a spirit of zealous readiness to assist in devising a practical scheme of cooperation between the diplomatic and the consular branches animates most of them, including even some of those who urge the strongest objections to the particular methods proposed. Of the objections, some arise from purely local conditions, such as the absence of diplomatic representation in a colony or other depend- ency, or the lack of need for more than consular activity in countries of limited area or trade importance — conditions which would, of course, have regulated the Department's action in carrying out the details of a general plan. Objections of a graver character will, it is believed, be found to rest upon a broader construction of the Depart- ment's purpose than it meant to convey, or than, in fact, is expressed in the language of its instruction. These objections proceed mainly, on the one hand, from apprehen- sions lest the diplomatic service may be hampered in the discharge of its ordinary duties by being forced to give too much attention to details of trade and industry, which now devolve upon the consular officers; and on the other hand, from the mistaken idea that the activity of the consuls might be repressed or at least circumscribed by the arbitrary interference of diplomatic officers. Neither of these PROMOTION OF TRADE INTERESTS. tf results is a necessary or even probable consequence of the plan as actually defined, but in order to remove all objections, the Depart- ment has decided to waive any prepossessions it may have had, and to confine its recommendation to what it finds to be the consensus of the best opinion among the diplomatic and consular officers them- selves. There are but few of the reports that do not concede the desir- ability of some expedient for strengthening and improving our official machinery for promoting trade. Many of them indorse the Department's proposals most strongly, and offer valuable suggestions for giving them full effect. In a number of instances, consular offi- cers themselves point out deficiencies in their own service and urge the importance of a better system of supervision and control. Those who oppose any material change base their arguments mainly on the very marked progress which the consular service has shown in recent years as an instrument of trade and the danger of making it worse m seeking to make it better. Leaving out of consideration the weak places revealed by the statements of their less optimistic colleagues, a sufficient answer to such objectors is found in the fact that, as has been pointed out by the Department in a number of reports upon the subject, the improvement has been largety fortuitous and the result of the native adaptability and energy of average Americans who happened to be chosen for consular positions rather than of concerted effort. Such direction as this improvement has had has come from the Department itself, which has always sought to encourage con- sular zeal and initiative, and would be the last to disparage their achievements. If, with such aid as the Department could give, 'the consular service has more or less casually evolved distinctive merits of its own, is it not reasonable to conclude that, with a system carefully devised with reference to its special capabilities and needs, and with the great advantage of diplomatic channels open to it, it could be made an instrument strong in all its parts and likely to be equal to any strain upon it from the growing demands of our industrial development? Just seven years ago, in December, 1897, the Department deter- mined upon a step not unlike the one now under consideration for the improvement of its service of commercial intelligence from abroad. Prior to that time, the Consular Iieports had been published but once a month, except in cases of special exigency. It was decided that the public should be put in possession more promptly of the great variety of information of value to trade and industry contained in consular dispatches, and accordingly, in January, 1898, the publication of the report every day, except Sundays and legal holidays, was begun. The result was that the consular service was at once brought into close and frequent touch with the business world, and a strong im- pulse was given to consular zeal and effort. The consuls soon real- ized that they had been provided with a means of getting the results of their work before the public with the utmost promptitude and in the most practical form, and that their efforts were sure of speedy and generous recognition by the great business community whom it was their chief duty to serve. In order to give full effect to the change, official rules and routine in this particular branch of the Department machinery were relaxed or modified, so that the work might not be obstructed by formalities, indispensable elsewhere, but involving, in 10 PROMOTION OF TRADE INTERESTS. this instance, unnecessary delays. The effect of these improvements, slight in themselves, but regarded at the time in some quarters as radical and even hazardous innovations, was not only to impart a powerful stimulus to consular activity, as many consular officers have testified, but for the first time, to concentrate the public intelli- gence upon the consular body as a practical trade agency, and to im- press it with a sense of the usefulness of the service in various direc- tions, which more than compensated for the shortcomings frequently alleged against it. The action iioav contemplated by the Department is merely in the same direction of giving greater practicality to the energies of our foreign service. It has been preceded by efforts to raise the general standard of personnel by means of increased care in making appoint- ments and in the promotion of individuals on the ground of merit. If. to these betterments, can be added judicious measures for combin- ing the special utilities of the two branches of the service — the diplo- matic and the consular — for the greater benefit of our material in- terests, it is believed that any cost to the Treasury, which meed not be considerable, will be many times repaid, and that neither the diplo- matic nor the consular officers will have reason to complain of in- fringement upon their proper rights or functions, but that both will reap the benefit of added consequence as more efficient agents of their country's progress. The apprehensions expressed in some quarters that such action may be interpreted by foreign nations as contemplating an aggressive cam- paign for tracle. and may consequently have the effect of intensifying the hostility already excited by our so-called " commercial invasion," of Europe especially, would scarcely seem to be entitled to much weight in view of the fact that the more advanced industrial coun- tries have for some time been openly equipping themselves for pre- cisely such effort, and as the governments of some of them are in the forefront of this movement, employing diplomatic as well as con- sular agencies in direct and often detailed action on behalf of trade interests, it is not to be supposed that serious objection would be made to or ill feeling aroused by similar activity on our part. In order, however, to provide against even so unlikely a contin- gency, and also to give full weight to the various considerations urged by the diplomatic and consular officers in their replies to the Department's interrogatories. I have the honor to propose that the Congress be asked to authorize the trial of a plan which, it is be- lieved, will reconcile the Department's general object with all the recommendations of practical importance from both branches of the service, and at the same time, avoid the possible complications upon which some of the representatives of each branch lay particular stress. As has been indicated, there is a consensus of opinion among those who have correctly interpreted the Department's instruction of July 29 as to the need of concentration and intelligent direction of effort upon the part of all our officials abroad who are capable in any way of contributing to our general equipment as an exporting nation in trade knowledge and in the tools and appliances for making the best use of it. They differ only as to the means and methods to be employed. The DeiDartment deems it but proper to defer, in this particular, to the judgment of men whose actual experience in the work gives them a special right to consideration; but as there is no PROMOTION OF TRADE INTERESTS. 11 general agreement among them upon a definite line of action, it is obviously necessary to endeavor first to harmonize their differences, and by consultation and comparison of views, to work out a practical scheme. This might be accomplished, it is true, by the Department itself, acting on its best judgment, after careful review of all the facts set forth in the answers to its interrogatories ; but it is believed that a solution of the problem much more satisfactory to the whole consular and diplomatic body, to the Congress, and to the country would be found if the plan to be finally pursued were the result of special inquiry and experiment by a staff of capable agents, acting for the Department of State, and through it, for the Department of Commerce and Labor, in personal contact and association with the diplomatic and consular officers in the more important trade regions. It will be observed that, in many of the answers to the Department's instruction, the creation of a staff of commercial experts is strongly urged, either as adjuncts of the diplomatic or the consular corps, or as intermediaries between them. In the opinion of the Department, they would be most useful as intermediaries. As such, they could be given the rank of attaches to embassies or legations, with facilities of access to official and other sources of information which are to be enjoyed only by persons having diplomatic status. Their duties, how- ever, being declaredly commercial, and only such as are already exer- cised by diplomatic officers of other Governments, they would in no way compromise the embassy or the legation in the exercise of its special functions. With the benefit of free access to all the executive departments of a government, and with the support and cooperation of the embassy or legation, such an official would occupy a position of peculiar vantage, which should enable him to extract all that is valuable to his country's industries and commerce from the opportuni- ties which, the Department believes, exist in the diplomatic service, but which now necessarily lie more or less fallow. The usefulness of such an agent would not be so great, however, in his diplomatic capacity, or even in making comprehensive reports upon commercial and industrial subjects, as in the service he could render by means of personal association with consuls and actual experience of their work. The observation of conditions on the spot by a competent and reliable representative could not fail to be of the utmost value to the Department in adjusting its action to the requirements not onJy of particular cases, but of the service as a whole. His assistance and advice, based, as it would be, upon excep- tional sources of information, might be expected to greatly facili- tate the work of a consular officer in many instances, and in course of time, he would, in all probability, be able to contribute his full share toward the working out of a system of efficient cooperation between the two branches of the service which would have intelli- gent regard for the proper interests of both. In the meantime, being, it is assumed, primarily a commercial expert, he would also be employed in supplying for the Department of Commerce and Labor information of a character, for comprehensiveness and accu- racy, not to be expected of either consular or diplomatic officers who lack the special equipment for such work. There are a number of consular officers, however, who may be classed as " commercial experts," as is demonstrated by the charac- ter of their reports, and, other things being equal, it would be of 12 PROMOTION OF TRADE INTERESTS. great benefit if the proposed new officers could be chosen, preferably, from among them. It mar. doubtless, be advisable to select special- ists for temporary purposes, as. for example, to report upon a par- ticular industry or a passing phase of trade conditions, but for the general purposes of trade promotion and the strengthening of our commercial representation abroad, the men best suited would seem to be those who have demonstrated their capacity and energy in the actual work of the consular corps. There is another reason, and, as it seems to the Department, a very strong one. for giving consuls the preference in making these appointments in the encouragement and incentive it would offer to the whole service for the. most strenuous effort. A capable consular officer, rewarded with the post of commercial attache, would be a living example and object of emulation for every aspiring man in the service: and to no other type of official, prob- ably, could consular officers look with the same confidence for encour- agement and help as to one who had been chosen for merit from among themselves. To none, it may be assumed, would they submit their own opinions so cheerfully or the business of their offices for inspection with a greater degree of assurance that full justice would be done them. As a graduate, so to speak, of the consular corps, and therefore in sympathy with his former associates, but officially inde- pendent of them, a commercial attache charged with such duty could be depended upon to hold the scales even between the indi- vidual and the Government, and with his consular experience to guide him. to reach conclusions fair to all interests and of practical and permanent value to the public service. A well-defined and stable system of consular inspection is the sim- plest and surest means of maintaining the proper standard of con- sular morale and efficiency, which has been so often sought in propositions to Congress for legislation, based, in some instances, upon alleged defects that have been remedied, or upon considerations of an academic or social character that commended themselves, at one time, to several of the European nations, but are now regarded either as obsolete or subsidiary to other requirements, developed by modern trade competition. Such a system of well-ordered super- vision would probably be most welcome to the consular service, con- sisting as it does, in the main, of a body of typical Americans, with those instincts of zeal for their country and earnest desire to advance its interests which are so strikingly characteristic of our people. Consular inspection, hitherto, has been of an occasional and neces- sarily partial character, owing to the fact that it could be undertaken only by special provision of Congress. The reports which have resulted from such inspection have undoubtedly been of value for both legislative and administrative purposes, but a steady, unrelaxing. and thoroughly well-informed supervision, such as has been indicated, is the only sure means of protecting the interests of the Government, of preventing lapses and abuses, of developing the full capacities of the service, and of securing to individuals the proper measure of their deserts. Xo consular officer fit for his position need fear such scrutiny, and all would feel that they had solid ground for encour- agement to do their best. The considerations which have thus been drawn from the reports of diplomatic and consular officers, herewith presented, seem to the PROMOTION OF TRADE INTERESTS. 13 Department to warrant a recommendation to Congress for the crea- tion of a staff of special agents, with the diplomatic rank and title of commercial attache, as provided in the tentative draft of para- graphs to be inserted in the diplomatic and consular appropriation bill, which I have the honor to submit (inclosure) . It will be observed that the number of proposed commercial attaches is limited to six. At first, and for some time to come, the scheme must be regarded as more or less experimental, and it is believed that six attaches will be sufficient to test its value. A smaller number would be inade- quate to cover the ground which it is desirable to occupy, if a fairly comprehensive trial is to be made. Under the terms of the proposed legislation, the six attaches, to be appointed by the President, pref- erably from the consular staff, are to be assignable at the discretion of the Secretary of State. Of the six. it is proposed that five shall be distributed so as to cover the following trade divisions: 1. Austria-Hungary, the Balkan States, Germany, Switzerland, Russia, and other countries of northern Europe. 2. France, Italy, Portugal, Spain, and other countries bordering on the Mediterranean. 3. Great Britain and dependencies. 4. Mexico, Central America, the West Indies, South America. 5. Asia — more particularly Asiatic Russia, China, and Japan. 6. At large — i. e., one attache to be held in reserve, either for spe- cial service in the Department of State, as occasion may require for advisory or other purposes, or for particular missions to any part of the world. It is not proposed that any of the attaches should have a fixed resi- dence at a particular capital, but that they shall be transferable from point to point as circumstances dictate. Their tenure should obvi- ously be secure, so long as they fulfill their duties satisfactorily, if we are to offer sufficient inducements to really capable men to make such a service what it ought to be — a career. For the same reason, and because of the exceptional qualifications demanded, a salary of $5,000, with adequate allowance for traveling expenses, is believed to be the least that could properly be offered. The total cost of such an estab- lishment, which is placed at $50,000 per annum, is insignificant com- pared with the results which, it is confidently expected, would soon begin to appear in the character of the information which the Department of Commerce and Labor would be able to furnish to manufacturers and exporters, and in the greater utility to our trade interests of the combined energies of the diplomatic and consular officers intelligently directed to a common end. If the importance of the proposed action is not sufficiently appar- ent from what has been said, it ought to be obvious when considered as a step in the direction of providing the United States with the official machinery which, sooner or later, will be imperatively demanded by our congested industries to aid them in finding outlets for their surplus products. As was pointed out in the Annual Review of the World's Commerce issued by this Department as long ago as April, 1898, and reiterated in the same publication by the Depart- ment of Commerce and Labor for the calendar year 1903, the pro- ductive capacity of American workshops and factories is increasing at such a rate that, to keep pace with it, we must obtain a commen- surate share of foreign consumption. " Foreign markets," we are 14 , PROMOTION OF TRADE INTERESTS. told in the Review for 1908, " are as necessary (to this) as the home markets were ten or fifteen years ago. In some lines our production in six or eight months is sufficient to cover the home demand of a year. The production of the other four months must be marketed outside the United States. Xor will it do to go into the foreign mar- kets with any less zeal and effort than is used to secure home markets. In fact, a much greater effort may be needed in the one than in the other." Whatever form such effort on the part of our business interests may take, it must be evident that it can be greatly facilitated by the most efficient representation by government agencies in the countries to which we wish to sell our surplus products. It is neither practicable nor desirable for the representatives of the Government in foreign countries to attempt to make trade. The actual business must always be left to the individual energy and tact of those engaged in it ; but unlike the home market, the foreign market presents peculiar con- ditions, often fluctuating, as to which the American exporter has, in most instances, no reliable means of information except ihe reports of diplomatic and consular officers. It is but just to the consular service to say that, upon the whole, it has kept well abreast of, and not infrequently has been in advance of the demand for such information ; but as our productive energy increases and the necessity for seeking foreign markets becomes more stringent, it is to be expected that the requirements of the business community for reliable, well- digested, and practical details as to trade conditions abroad, and for advice and help in exploring unknown markets, will tax the best official machinery that can be devised. It would seem to be but the part of ordinary prudence not to wait for the emergency, but to set to work at once to perfect such machinery while there is still time for experi- ment and trial. Respectfully submitted. Francis B. Loomis, Acting Secretary. Draft of paragraphs proposed for insertion in the act making appropriations for the diplomatic and consular service for the fiscal year ending June 30. 1906. SALARIES OF COMMERCIAL ATTACHES OF EMBASSIES AND LEGATIONS. For six special agents of the Department of State, with the diplomatic rank and title of commercial attache, to be appointed by the President, preferably from the consular service, and to be assigned, subject to transfer, at the discre- tion of the Secretary of State, to embassies and legations, or to particular trade regions or to such occasional service in the Department of State, as may be deemed advisable by the Secretary of State, who shall make regulations pre- scribing their duties, which shall include inspection of consulates, and shall require such cooperation by diplomatic and consular officers as may be necessary and judicious, at $5,000 each, $30,000. For necessary traveling expenses and cost of clerk hire, books of reference and periodicals, stationery, typewriting machines, telegrams, etc.. for official pur- poses of such commercial attaches. $20,000. Total, $50,000. APPENDIX. REPORTS OF DIPLOMATIC AND CONSULAR OFFICERS ON PROMOTION OF TRADE INTERESTS. 15 INSTRUCTION TO DIPLOMATIC OFFICERS. [Circular.] Promotion of Trade Interests. Department of State, Washington, July 89, 190Jf. To the Diplomatic Officers of the United States: Gentlemen : I have to request that you will cause to be prepared at your earliest convenience for the information of the Department a memorandum upon the capabilities of the diplomatic service for the promotion of our trade interests in the country or countries to which you are respectively accredited. The Department is prompted in making this inquiry by two considerations which have been impressed upon it in the course of years in the collection of commercial and industrial data for publication in the Consular Keports. The first of these considerations is that our embassies and legations, as shown by their frequent efforts to assist the spread of trade in- telligence among our people, would seem to need only a definite plan of action and proper instruments to become powerful auxiliaries in the great and constantly growing work of equipping our manufac- turers and exporters for effective competition in the world's com- merce. The second consideration is the limitation upon the consular service in its lack of diplomatic status in obtaining official informa- tion at first hand. Such information can be secured by a consular officer only through the cooperation of our diplomatic agents or by courtesy of an official of the country in which he is located. More- over, a consul-general in the capital city of a country may be, and usually is, a local officer, whose jurisdiction and influence do not ex- tend beyond a particular district. It has sometimes happened that, when the Department has sought to obtain through the consular officers a group of comprehensive reports upon some subject of gen- eral interest and importance, serious omissons have occurred from the inability of those officers to reach the center of official information — i. e., the ministerial department of a government specially charged with the matter. Fortunately, in most instances, this difficulty is over- come by the assistance rendered to the consuls by our diplomatic representatives or by the good offices of some bureau of a govern- ment with which a consul may have established friendly relations. It will be apparent to you, however, that if the United States is to gain and hold its proper place among the industrially competing nations in the world's markets nothing should be left to such chances, H. Doc. 245, 58-3 2 IV 18 PROMOTION OF TRADE INTERESTS. but that the machinery for collecting information as to business con- ditions in other countries should be made as efficient and as safely automatic as the means will allow. As you are aware, the consular service has made a general and very marked advance in its utility in this direction in recent years, so much so, in fact, as to have be- come the object of imitation and emulation on the part of the more prominent industrial nations; and it is believed that, if the diplo- matic service could be brought into closer and more active coopera- tion with it, the United States would possess an instrument of trade expansion which it would be difficult to rival. In view of the fact that the extension of commerce, in its many forms, with a multitude of subsidiary interests, has admittedly be- come one of the chief aims of world diplomacy, and the further fact that some nations already have diplomatic representatives, known as ;; commercial ataches," charged with the special duty of collecting industrial and trade information, it is assumed that no serious question of propriety could arise from the assumption by an embassy or legation of the functions which have been indicated as a part of its regular duties. Your opinion is therefore requested on the following points : 1. Would it be practicable for you to transmit to consular officers in the country to which you are accredited instructions from the Department of State, from time to time, for particular inquiries; noting in your dispatch of transmission any suggestions that may occur to you, from your sources of information at the capital, which would facilitate the inquiry or help to make it more comprehensive or more exhaustive? If the consular officers should be directed to transmit their answers to such instructions through you, could you undertake to have their reports revised, with annotations indicating errors of fact or judg- ment, or portions to be eliminated as likely to give offense or to cause you embarrassment in your diplomatic capacity? You will appreciate the fact that, to prevent friction with the consular corps and to preserve the spirit of initiative, which is one of its most valuable features, the Department must reserve the right to determine whether a report shall be amended or suppressed, in whole or in part, and that the annotations made by diplomatic officers are for its guidance in reaching a decision. The Department would always appreciate the fullest complementary information from an embassy or legation, whenever a report or series of reports seemed to be defective or misleading. It is to be understood that the Department would continue to communicate directly with consular officers as to matters pertaining exclusively to their districts. 2. Is there such cooperation as that outlined above between the diplomatic and consular services of the country to which you are accredited ? If so, describe it as fully as you % can. Has the Gov- ernment any commercial or industrial attaches? If so, define their duties, diplomatic status, pay, etc. Would such attaches, in your judgment, be useful for the United States? 3. What additional assistance, if any, would be needed to enable you to carry into effect the programme described under question 1 ? Any suggestions that may seem, from }^our consideration of the foregoing, to be likely to further the object sought — viz. the coordi- PROMOTION OF TRADE INTERESTS. 19 nation and improvement of existing facilities for the collection of commercial intelligence, with the possible result of legislation by Congress, to make them still more efficient — would be welcomed by the Department. The principal consular officers will be furnished with a copy of this instruction for an expression of their views upon the subject. I am, gentlemen, your obedient servant, Francis B. Loomis, Acting Seretary. CIRCULAR TO CONSULAR OFFICERS. [Circular.] Promotion of Trade Interests. Department or State, Washington, August ^, 1901],. To the American Consular Officers. Gentlemen : I inclose, for your information, a copy of a circular to the American diplomatic officers in regard to a plan for the coor- dination and improvement of existing facilities for the collection of commercial intelligence and the promotion of American trade inter- ests abroad. The Department desires an expression of your views upon the subject as early as practicable. I am, gentlemen, your obedient servant, Alvey A. Adee, Acting Secretary. letter to secretary of commerce and labor. Department or State, Washington, August 1, 1904. Sir: I inclose herewith copy of an instruction to our diplomatic officers, calling for an expression of their views as to the practica- bility of a systematic cooperation on their part with the consular offi- cers in collecting commercial and industrial information for publi- cation in the Consular Eeports. It is believed that such cooperation on the lines indicated in the instruction might result in greatly strengthening and improving our facilities for supplying fresh and reliable data as to trade conditions and industrial progress in for- eign countries to our manufacturers and exporters, and thus promote the sale of American goods abroad. Eeplies to this instruction will doubtless provide the basis for an intelligent prosecution of the plan, in concert with your Department, should it be found to be feasible. I have the honor to be, sir, your obedient servant, Francis B. Loomis, Acting Secretary. The Secretary of Commerce and Labor. Inclosure. 20 PROMOTION OF TRADE INTERESTS. REPLY OF SECRETARY OF COMMERCE AND LABOR. Department of Commerce and Labor, Office of the Secretary, Washington, August 2, 1904- Sir : I have the honor to acknowledge the receipt of your letter of the 1st instant, inclosing a copy of a circular letter issued to our dip- lomatic officers calling for an expression of the views as to the prac- ticability of systematic cooperation on their part with the consular officers in collecting commercial and industrial information for publi- cation in the Consular Keports. Your letter and inclosure will be forwarded to the Bureau of Sta- tistics for its information. Respectfully, V. H. Metcalf, Secretary. The Secretary of State. REPORTS OF DIPLOMATIC AND CONSULAR OFFICERS BY GRAND TRADE DIVISIONS AND COUNTRIES. EUROPE. AUSTRIA-HUNGARY. Report from the Embassy. American Embassy, Vienna, September 9, 1904. The embassy is of the opinion that, in many cases where the De- partment desires particular information, it would be entirely practi- cable for it to transmit to the consular officers within its jurisdiction the Department's instructions, noting in the dispatch of transmission such suggestions as, from our sources of information at the seat of government, would materially expedite the inquiry desired and help to make it more comprehensive. Should such a course, however, be adopted as the invariable rule, it is easily possible to conceive of cases in which the embassy's intervention might lead to unwarrantable delay. Regarding the second paragraph of the Department's question, I do not see how the embassy could undertake to revise the reports of consular officers in reply to such instructions as above indicated, if transmitted through the mission, without practically making a sepa- rate report of its own, which would naturally entail much delay — that is, so far as regards errors of fact. As regards errors of judg- ment, in cases where reports come from consular officers at a distance from the seat of the mission, it seems safe to assume that the official making the report and being on the spot is better qualified than the embassy to express an opinion. In the rare cases where portions of reports would cause embarrassment to the embassy or give offense here, it could well be indicated that such was the opinion of the mission. Such cooperation as that above outlined does not exist between the diplomatic and consular services of Austria-Hungary. That is to say, all consular reports are transmitted through their diplomatic representatives; but I am informed by the second chief of section at the foreign office such a course is largely formal, and only in special cases where the mission happens to be fully acquainted with the sub- ject in hand is any revision ever made. The Austro-Hungarian Government has no commercial or indus- trial attaches. To supply this want, however, they have stationed in most of the large capitals of Europe experts appointed by the depart- ments of commerce and agriculture. These experts have no diplo- 21 22 PROMOTION OF TRADE INTERESTS. matic or consular rank and are in no way subordinate to either branch of the service. They are usually, upon their arrival at a new post, in- troduced by their diplomatic representatives to the various depart- ments of the government, viz, the ministries of commerce, agriculture, and interior, but have no further connection with the mission. All their instructions are sent to them direct from the ministry by which they have been appointed — never through the foreign office — and their reports are made in the same way. They do not confine themselves to the capitals of the countries where they are stationed, but travel, and by personal observation keep themselves thoroughly informed of the general commercial and industrial conditions prevailing throughout their sphere of action. The English commercial attache is the only one at Vienna. He has the dipk-matic rank of second secretary of embassy and is accredited al^c* ^o Rome. Athens, and throughout the Balkans, though he spends most of his time here. He was, upon his arrival in Vienna, officially introduced by the British ambassador in person at the several ministries, and is in a position to obtain expeditiously full and reliable information. His salary is £1,000 per annum. In a general way it is his duty to draft all notes to the foreign office and dispatches to his home government dealing with politico- commercial matters as well as the making of special reports. The British Government has such representatives also in Berlin, Paris, and St. Petersburg. They are appointed by their foreign office, and usually are young men who have been in the consular service and have shown signs of marked ability. Such a man would, in my opinion, be needed to enable the embassy to thoroughly carry into effect the programme described under your question 1, but whether the possibilities of our trade expansion in Austria -Hungary would warrant such an appointment seems prob- lematic. Chandler Hale, Charge d' Affaires ad Interim. Opinions of Consular Officers. BUDAPEST. American Consulate- General, Budapest, September 12, 1904- From Hungary's point of view any more supervision by the dip- lomatic officers of the Hungaro-Austrian monarchy of the Hungaro- Austrian consuls' reports than the simultaneous receipt by them of copies of all communications of political importance made to the foreign office in Vienna is groundless and vexatious to all concerned. The ordinance Xo. 2873/H, of March 1, 1868, issued by the Hun- garo-Austrian minister of foreign affairs to the consuls of the mon- archy directed the transmission of consular reports as follows : (a) The yearly reports shall be sent at the end of March through the consulate-general and the diplomatic mission. (b) The periodic weekly and monthly reports of consuls in Europe and the quarterly reports of consuls in the other continents PROMOTION OF TRADE INTERESTS. 23 of the globe shall be sent direct to the ministry of foreign affairs in Vienna. (c) The special urgent reports made by all consuls shall be sent direct to the respective ministers of commerce in Budapest and Vienna. (d) The .requested reports awaited by either of the two ministers of commerce shall be sent direct to the requesting minister, but a copv shall be sent simultaneously to the diplomatic mission. In 1886 (ISTo. 24,707/10, of April 30) another ordinance of the minister of foreign affairs instructed the consuls to reply direct to all requests for reports made by either of the two ministries of com- merce; and in the printed instructions as to the rendering of con- sular reports issued in 1895 (sections 10, 32) no mention is made of the obligation to send a copy of the yearly and requested reports to the diplomatic mission. Consular officers may also telegraph direct to the two ministers of commerce urgent openings for goods, etc. The particular attention of Austrian business circles has been drawn to the result of the written agreement between the Hungarian and Austrian ministries, signed by ex-Prime Ministers Banffy and Bacleni in 1898 (incorporated in Article X of the proposed new cus- toms and commercial convention between Hungary and Austria, which still awaits passage by the two Parliaments). By the said agreement Hungary and Austria arranged for autonomous Hun- garian and Austrian commercial and agricultural commissioners to reside in foreign countries and to be reported to the foreign govern- ments, but not accredited and attached as diplomatic or consular officials. Until 1898 the consular reports found their way to public notice quicker in Vienna than in Budapest; but the Hungarian ministers of commerce have lately, in concrete cases, effected a reform in the transmission and publication by which Hungary now publishes .such reports quite as promply as Austria. In consequence of the foregoing state of things in Hungary, which is a rival of America both industrially and agriculturally, and has just established closer commercial navigatory relations with the United States of America, the gain won by raising the American con- sulate at Budapest to a consulate-general will immediately be lost by putting it under the embassy in Vienna. Not only will the old loss of time in transmission occur, but the old narrowing reflections of the Austrian standpoint will renew themselves. Any special experts in commercial or agricultural fields should be sent separately to Hun- gary and Austria, reported through the embassy in Vienna to the Hungaro- Austrian ministry of foreign affairs, but instructed to reside and hold office in or near the respective consulates-general in the two countries. The same is true of immigration, river and harbor, and all other special experts or commissioners sent out from Washington. The attention of the Washington Government is called to the fre- quent sending to Europe of experts in city administration, sugar manufacture, prison supervision, State education, and other govern- mental and economic matters by single States and cities of the Ameri- can Union. Such unaccredited persons frequently call upon the embassy or the consulates for letters to the State and local authori- ties, in Hungary as well as in Austria, and obtain information and deference of treatment which ought to be paid, first of all, to national officers sent out from Washington. 24 PROMOTION OF TRADE INTERESTS. In place of commercial attaches, the United States should, in the opinion of this office and of its Fiume agency, first provide salaries for deputy consuls and consular agents, making them responsible for the routine official work of certifying invoices, viseing passports, etc. The principal officers would then be free to devote the greatest part of their time to the preparation of consular reports, replies to merchants, handling of samples and catalogues, etc. The presence of commercial attaches would then be necessary only in countries where technical reports are especially desired at certain junctures in the trade and manufacturing in certain lines. Diplomatic annotation of consular reports of a purely commercial nature is everywhere in the world considered unnecessary. On the other hand, the Bureau of Trade Relations ought to require consular officers to confine their reports to information regarding their respec- tive districts. At present consuls in Germany are allowed to report on both Hungary and Austria, and it is not seen how the embassy in Vienna or in Berlin could prevent their transmission for publication. Frank Dyer Chester . Consul-General. KEICHEXBEKG. In accordance with circular instructions of August 4, 1904. I beg to report that the plan for the promotion of trade interests outlined in the circular to diplomatic officers of July 29. 1904. can not. in my judgment, be too strongly indorsed. From my own experience, and especially in Austria, I believe that the plan, which is so comprehensively set forth in the circular as to obviate any repetition of reason or argument, would result not only in a simplified but a greatly expedited service. The difficulties that consular officers meet in securing, and especially from official sources,' accurate and prompt information have not been too strongly stated, while such information, if called for through diplomatic channels, would be immediately forthcoming. It would also, I think, be a relief to every consular officer to be called upon for specific facts obtainable within the boundaries of his own district, instead of for general information, which frequently comprehends the technical and commercial details of a subject national in its scope and extremely puzzling as to what should be its proper treatment by a district officer. S. C. n McFarlaxd. Consul. Rek hexberg, August 31. 1904- TRIESTE. I have the honor to acknowledge the receipt of the Department's circular, dated August -1. 100-1. requesting an expression of the views of consular officers in regard to the plan for the coordination, and improvement of existing facilities for the collection of commercial intelligence and the promotion of American trade interests, outlined in the circular to diplomatic officers of July 29, 1904. In response to these instructions. I beg to say that there can be no doubt that diplomatic officers have facilities for collecting commercial PROMOTION OF TRADE INTERESTS. 25 and industrial data which consular officers do not possess. The large majority of our consuls are located in provincial toAvns, and in coun- tries with a centralized form of government. It is often exceedingly difficult to obtain from provincial officers any information relating to the affairs of their respective offices without the express permission of the Government. To exemplify : A few days ago, while preparing my report on ware- houses for storage of merchandise in transit or in bond, I had occa- sion to request the local warehouse authorities to favor me with a statement of their aggregate receipts and expenditures. The super- intendent promptly replied that he regretted his inability to comply with my request ; that the regulations of the service required him to observe absolute secrecy concerning the financial affairs of the ware- houses, and that the data which I requested could be obtained only from the minister of commerce. Consuls in provincial towns, as a rule, are compelled to draw their material for commercial reports from private sources and the metro- politan newspapers. As regards my own case, I have to rely chiefly en the leading Vienna papers for all really important items concern- ing the commerce and navigation and even the sanitary condition of this port. A few years ago I was greatly surprised one morning to find in a Vienna paper the statement that there was a case of plague in Trieste. No mention of it had been made in the Trieste papers or in the bulle- tin of the local health board. To get at the truth of the matter I interviewed one of the physicians of the city hospital. This gentle- man reluctantly admitted that ten days before a Greek sailor had died at the hospital under rather suspicious circumstances; that the sur- geons who performed the autopsy were convinced that the disease which caused the man's death was plague, but that under existing regulations portions of the diseased tissues had to be sent for a final examination to Vienna, whence any announcement concerning the case would have to proceed. I at once reported to the Department by cable the appearance of plague at Trieste. Had it been reported from Vienna as soon as it was announced there — that is to say, the day before — I might have been suspected of dereliction of duty. I merely make mention of these cases to show how much easier it is for diplomatic officers accredited to a country with a centralized form of government to obtain industrial, commercial, and sanitary infor- mation than it is for consular officers located in provincial towns. By the earnest yet judicious cooperation of our diplomatic and con- sular officers, much could be done for the expansion of our foreign trade which at present must needs remain undone. If, for instance, the diplomatic representatives would refer all important commercial and industrial information obtained at the capital to the consuls of the district to which it relates, with the request to investigate it and report thereon either to the legation or embassy or directly to the Department, both branches of our foreign service might by concur- rent efforts often accomplish results which neither could accomplish single handed. The transmission through the embassies or legations of the Depart- ment's instructions to the consular officers for special inquiries, as well as for the consular reports prepared in response thereto, would, I 26 PROMOTION OF TRADE INTERESTS. believe, with a fairly stable diplomatic personnel, result in supplying our merchants and manufacturers with more comprehensive and "per- haps also more reliable information as to commercial and industrial conditions in foreign countries. On the other hand. I am clearly of the opinion that much would be gained if consuls were permitted under certain circumstances to transmit commercial reports prepared on their own initiative directly to the Department, and not, as the Consular Kegulations require at present, under open cover through their respective consuls-general. The Department's circular of December 15. 1903. requires con- sular officers to report promptly all opportunities in their respective districts for supplying material for or obtaining contracts in the construct on of public or semipublic works. As in Austria, the period during which proposals for contracts are received is usually limited to thirty days from the day public notice thereof is given. American contractors do not often have an opportunity to compete unless the notice is brought to their attention with all possible haste. Letters sent from here to Washington via England often reach their destination in ten days, while my official dispatches, when trans- mitted via Vienna and Bremen, are probably not less than two weeks in transit. Other consuls doubtless labor under similar dis- advantages. I would, therefore, respectfully suggest that consular officers be permitted to send all dispatches reporting notices of contracts to be let or transmitting plans and specifications relating thereto by direct mail. Fredk. AY. Hossfeld. Consul. Trieste. September 14- 1904. VIEXN'A. Replying to circular dated August I, " Promotion of trade inter- ests," I beg to express my concurrence in the proposition to bring the diplomatic service into closer and more active cooperation with the consular service. Consular officers, more particularly in capital cities, where the presence of diplomatic representatives places con- suls in the background, are handicapped in their efforts to obtain information from official sources. It is extremely difficult "to secure good results from applications for information when they pass through the hands of the diplomatic representative. This is doubt- less due to the lack of personal agency in presenting such requests. as by the present method the requests are probably merely trans- mitted without any further attention being bestowed upon them. In order that adequate and prompt replies be given to inquiries of this nature, care should be taken that they be placed before the proper officials, and it would be well also to discuss the subjects personally. It would be most advantageous if the consular officials could themselves be enabled to meet the government officials and were introduced at the different departments for this purpose. If this is not possible, such cooperation by the diplomatic representa- tives as will insure proper consideration of applications for informa- tion is most desirable. This appears to be the one point by which PROMOTION OF TRADE INTERESTS. 27 a great improvement could be brought about in the present system of collecting information. W. A. Eublee, Consul-General, Vienna. September 14, 1904- BELGIUM. Report from the Legation. American Legation, Brussels, September 5, 1904. In reply to circular of July 29, 1904, on the subject of the " Pro- motion of trade interests," I have the honor to inform the Department that the system of collecting and transmitting data relating to trade and industrial conditions by the Belgian diplomatic and consular representatives abroad is as follows: The principal consular officers (consuls of career) make reports from time to time on local trade conditions, especially in regard to possible markets for Belgian products. The chiefs of the diplomatic missions make reports on the general trade and industrial conditions of the country and transmit to the home Government commercial and industrial data of an official nature. The material for these reports is obtained from official information furnished by the Government, but more particularly from data collected from official and other sources by the secretaries of the mission, who have, on account of their diplomatic rank, access to the special departments of the Gov- ernment, which are denied to the consular officers. But in addition to official data, the secretaries of legations, who have had years of experience in the diplomatic service, who possess a thorough knowl- edge of the language and customs of the country, and who have generally established personal and friendly relations with individuals holding positions of importance in the official, commercial, and industrial world, are thus in a position to obtain much valuable material for such reports, which, under other conditions, would be unattainable. As far as I can learn, the diplomatic and consular services of Belgium work independently in this regard, the latter devoting its energies more especially to local trade conditions and favorable markets. My experience proves that much of the official information furnished by foreign governments through the usual diplomatic channels is often incomplete. As an example, I may refer to official information which the Belgian Government furnished for a number of years to this legation, at the request of the Department, on the subject of sugar bounties granted in this country. The information was correct as far as it went, but incomplete. The material for my report to the Department on this subject, dated December 28, 1899, Avas obtained from official sources and publications, from conversa- tions with individuals having a special knowledge of the subject, engineers, members of commercial bodies, and exporters, as well as from personal visits to the sugar factories. The question of having commercial attaches at the Belgian lega- tions abroad was broached a few years ago, and even brought before 28 PROMOTION OF TRADE INTERESTS. the Parliament, but was withdrawn for reasons of economy. The minister for foreign affairs informs me that it is again being agitated. I have seen much valuable work accomplished by the British com- mercial attaches abroad, having diplomatic rank, possessing a thor- ough knowledge of the country and its language, and who are sta- tioned for a number of years in one country, thus having the means at their disposal of obtaining special, unusual, and valuable informa- tion. In my opinion, if Congress would provide for such commercial attaches abroad, the efficiency of the diplomatic service would be en- hanced. If this plan should not meet the views of Congress, or in case it should be considered unnecessary to have a commercial attache at this legation, much valuable data and information of a commercial or industrial nature might be collected by an active young attorney, provided he were to receive a fixed annual compensation. The British legation in Brussels has such a man who collects for the lega- tion much valuable information and data on these subjects not obtain- able through the usual diplomatic channels. Referring to the three interrogatories included in the circular in question, I have the honor to say that in my opinion it would be en- tirely practicable for me to transmit to the consular officers in this country instructions from the Department containing particular inquiries, noting any suggestions which may occur to me, and adding any official data on the subject in question which the consular officer might not be able to obtain, except through diplomatic channels. I would also be very glad to receive the answers to such special inquiries from the consular officers, when the Department so instructs, and to attach any amendments or additions thereto for the further informa- tion and consideration of the Department. There is no cooperation between the diplomatic and consular officers of Belgium similar to the above plan, as proposed by the De- partment. They work independently of each other ; but, as I have before stated, the more important consular officers of Belgium, consuls of career, who are obliged, before appointment, to have passed the special commercial examination of universities and to have received the degree lately instituted of " commercial engineer," make very com- plete reports on industrial and commercial conditions^in their respec- tive districts, for which work they are especially fitted by their edu- cation and the special examinations which they are required to pass. If Congress were to provide for a legal adviser or counsel of the legation, it would be all the additional assistance I should require to carry out the programme of cooperation, as described under question 1. Lawrence Townsend, Minister. Opinions of Consular Officers. ANTWERP. Returning from leave of absence, I find Department circular letter " Promotion of trade interests," under date of August 4, which Vice- Consul-General Haine, in charge, deferred answering, referring the same to me. PROMOTION OF TRADE INTERESTS. 29 In reply, I have to state that the change suggested meets my most hearty approval, and that closer relations for the purpose designated, and along the lines proposed, between the diplomatic and consular representatives abroad, could not, in my judgment, prove otherwise than advantageous to the manufacturing and trade interests of our country The plan is practical and on business lines, and I hope to see it inaugurated, although I am free to say that, during my eight years' experience in the consular service in Italy, England, and Bel- gium, requests for information desired from ambassadors or ministers have been cheerfully and promptly complied with. Church Howe, Consul- General. Antwerp, December 9. 190. %. BRUSSELS. In reply to Department circular requesting the expression of views upon the plan for the coordination and improvement of existing fa- cilities for the collection of commercial intelligence and the promo- tion of American trade interests abroad, I have the honor to say that I am of the opinion that if the cooperation of our diplomatic and consular officers could be carried out in the kindly spirit of mutual assistance, it would be a valuable aid in promoting the object of the circular in question and would undoubtedly assist in our future com- mercial expansion. Consular officers are frequently handicapped in transmitting full reports to the Department through difficulty in ob- taining some desired official data, due to existing conditions. Per- sonally, I have been generally fortunate, through the kind courtesy of officials with whom I enjoy friendly relations, in procuring informa- tion which the Department has instructed me to secure. I am inclined to believe that much of the usefulness desired by tne Department by the proposed cooperation would be destroyed if dip- lomatic agents are instructed to have revision and annotations made of consuls' reports transmitted through them, as the revision and an- notations would probably be done by a clerk attached to the embassy or legation who in all likelihood had collected similar data, and might, to the prejudice of the absolute authenticity of information contained in the consul's report, revise same if it conflicted with data presented by the clerk. George W. Eoosevelt, Consul. Brussels, August 2h~^ 1904. GHENT. Pursuant to the Department's circular " Promotion of trade inter- ests," I have the honor to state that, in my opinion, the assistance and cooperation of the American diplomatic officers with the American consular officers in Belgium would not improve or facilitate the col- lection of commercial intelligence for the promotion of American trade interests in this consular district. The courtesy of Belgian officials in this district has always been cordially extended, as has that also of the different departments of 30 PROMOTION OF TRADE INTERESTS. the central government at Brussels, whenever I have had occasion to request official information at first hand. This information has been disappointing, however, in two respects, namely, the delay in trans- mission and meagerness in detail. It is impossible to obtain commercial reports that are entirely sat- isfactory. The chief obstacle that prohibits the free procurement of complete and reliable information on the industries and commerce of this district is the reticence of the parties who are directly engaged in them. The general feeling is that such information is a part of the good will of the business or stock in trade, to be in every respect zeal- ously guarded lest a competitor profit thereby. This has defeated several attempts to make reliable reports, the information obtained proving unreliable on further inquiry. As to a commercial attache. I do not believe he would be in any better position than this consulate with respect to procuring reliable commercial and industrial information in this district. If. how- ever, on the other hand, this Government should establish a com- mercial information bureau, in each province, with a competent of- ficer in charge whose investigations and researches would" be available to its local members and to the members of the consular body, accu- rate information on the conduct of industries and the commercial de- mands of the district could be obtained. Otherwise, present condi- tions do not permit consular officers in this district to learn the facts to make complete and accurate reports. Certain detailed informa- tion on some subjects is obtainable indirectly. The best method to be employed is for American salesmen to compete on the ground with the salesmen of other countries, who thus sell the goods, wares, and merchandise of their respective countries. Frank K. Mo week. Consul. Ghent, September 5, 190 !±. LIEGE. In reply to Department's circular ;i Promotion of trade interests,*' I beg to say that, in my judgment, diplomatic officers, enjoying privileges in advance of consular officers which offer ready facilities for obtaining authoritative commercial and industrial information direct from the ministerial departments of the Government, have a valuable capacity for furnishing statistics and other useful data. In Belgium, the provinces in which the various American consu- lates are located have departments fashioned after the ministerial departments of the parent Government. These departments make annual detailed reports covering the various heads within their juris- diction, which reports are forwarded to the Government offices at Brussels, as well as to the consuls throughout the Kingdom. These provincial reports are later classified and the aggregate computation is published, and the consuls are supplied with a copy. It will therefore be seen that unless the report is a special gov- ernmental one, the nature of which I can not determine, and con- cerning which no special publication has been made, the consular officer Is as thoroughly equipped with statistical information as the diplomatic officer can possibly be. The publication of bare statistics without a relative explanation is oftentimes not susceptible of a clear PROMOTION OF TRADE INTERESTS. 31 interpretation. The powers of the diplomatic officer could furnish the aggregate result of the provincial reports, beyond which, with- out a supplemental 7 consular report touching the articles manu- factured or produced in the various consular districts, such report would lack the necessary detail to give it value. A consular officer, being abroad in a commercial capacity, is surrounded with opportu- nities that a diplomatic officer does not enjoy. He has his valuations and the methods of reaching the same as presented in the consular invoices passing through his hands to guide him. He enjoys an in- timacy by reason thereof with the shipper, who supplies him with in- formation touching the details of the manufacture of articles in which he is interested, as well as market conditions, both existent and in expectancy. Consuls are on the ground and in daily con- versation with some dealers or shippers and can better note a demand for American goods than can the diplomatic officer who never has oc- casion to visit the consular districts. With the commercial and industrial publications issued by the Gov- ernment at hand, consular officers are as well equipped, from a statis- tical standpoint, as is the diplomatic officer, with the further advan- tages as noted above. The diplomatic officer would be compelled to call upon the consular officers for a detailed report of the special pro- ductions of their districts, and apart from the modification of certain statements that might be harshly construed by the Government to which he is accredited, he could do no more than supply to the report the information compiled by the ministerial departments, which in- formation is already in the hands of the consular officers. I believe, therefore, that consular officers are more capable of com- piling reports on commercial and industrial matters than diplomatic officers, for the reasons above mentioned. This, of course, applies to Belgium as well as to articles produced specially in the consular dis- tricts therein. As diplomatic officers would have to depend upon the consuls for +heir matter, it would appear that the present system of forwarding direct to the Department would save time. The diplomatic officer could be requested to supplement anything required from Government sources. James C. McXally, Consul. Liege, September 3 : 190 J^. DENMARK. Report from the Legation. American Legation, Copenhagen, October 13, 190 Jf. Replying to the Department's circular of July 29 last, I would say that, during my incumbency of the office, this legation has considered it to be one of its legitimate functions to assist in promoting our trade interests by independent efforts as well as by cooperation with the American consul in this country. Care has been taken to avoid friction that might result from undue usurpation of duties that would naturally devolve upon consular officers, and no -jiffioulty has been experienced on account of such lirjloniatic work &« you suggest. 32 PROMOTION OF TRADE INTERESTS. Whenever the consul has found it necessary to apply for information from the Danish Government through the legation, the request has received prompt and courteous attention. It is to be remembered in this connection that we have but one consulate in the Kingdom, namely, at Copenhagen. This, of course, facilitates such cooperation as that indicated in your circular and makes some of the difficulties mentioned inapplicable to Denmark. With reference to the specific points on which you desire my opinion, I find nothing under Xo. 1 that would prove impracticable or embarrassing if intrusted to this office. Xo. 2. Denmark has no such cooperation as that outlined, nor has it any industrial or commercial attaches. It occurs to me that the United States Government would profit and our consular service would be improved by the appointment of commercial and industrial experts, to be distributed throughout the world at such centers as would be considered most advantageous, hav- ing regard to trade zones and similarity of commercial activities and interests. The work assigned to them would be of such- nature that diplomatic representatives could not well undertake it; and though consular officers may have general qualifications for discovering and developing markets for American goods, they have not, as a rule, the special training or knowledge of an expert. Such an auxiliary as I have in mind would be of great value to our consular body as an educator, a counselor, and an inspiring guide. By covering a com- paratively large field, over which he would be required to travel fre- quently, he would become the disseminator of knowledge among the officials in his territory and be able to contribute^ much toward bring- ing about better system and articulation in their work. Personal contact and exchange of ideas is of inestimable value in all work per- taining to commerce, and a medium such as indicated would, in my opinion, do much to perfect our consular service. The value of the independent work that would be carried on by such experts is obvious. Their appointment and tenure of office should be made as independ- ent of political exigencies and party changes as could be devised. To question 3. I have to say that no additional assistance would be needed to enable me to carry into effect the programme described under question 1. Laurits S. Swexson, Minister. Opinions of the Consul. COPENHAGEN. Replying to Department circular " Promotion of trade interests," I have to state that I have read the Department instruction of July 29, 1904, addressed to the diplomatic officers of the United States, and I most cordially indorse the plan therein outlined. I may add that the general propositions laid down in said circular of July 29 are in perfect harmony with views I have frequently expressed to the American diplomatic representatives at this post in discussions of the subject of the promotion of our trade interests abroad. There is no doubt that the social as well as the official pres- PROMOTION OF TRADE INTERESTS. 33 tige enjoyed by diplomats places them in a position to obtain more reliable and more valuable information on many subjects of interest to our commercial people than consuls can obtain. This is especially true where the information sought is of an official or semiofficial nature. There is no excuse for the minister and the consul at a foreign capi- tal not cooperating enthusiastically in the plan outlined or in any plan which has for its aim the enhancing of our commercial power. Many of our legations could be converted into positive forces of incalculable value to our commercial interests were some such proposi- tion as is outlined in the circular of July 29 carried into effect. Raymond R. Frazier, Consul. Copenhagen, August #0, WOJf. FRANCE. Report from Ambassador Porter. American Embassy, Paris, October 6, 1904. In reply to the circular of July 29 last, requesting information re- garding the capabilities of the diplomatic service for the promotion of our trade interests in France, etc., I have the honor to submit the following considerations : There is no doubt that diplomatic officers should realize the fact that this is essentially a commercial age, and that a representative abroad can not serve his country better than by directing his efforts toward improving and enlarging its trade relations. With this object in view, there has been in this country a close and effective cooperation between this embassy and the consulate, and any com- mercial information the latter desires to obtain from the French Government is transmitted cheerfully and promptly through the diplomatic channel of the embassy, although it at times greatly taxes the limited force available for such work. This method of cooperation has been found very satisfactory. My observation teaches me that the consular service has visibly improved from year to year, and if our best and most experienced consuls be retained in office, these good results will, I am sure, con- tinue to make themselves felt. I shall answer the questions in the circular in their numerical order. Question 1.- — It would be practicable for this embassy to transmit to consular officers in France instructions from the Department of State making particular inquiries ; to send them such suggestions as might be of service ; to receive their answers and to forward them to Washington with such annotations as might be dictated by diplo- matic or other considerations. This would, of course, create some delay in the transmission. One objection to such a course would be that it might suppress somewhat the ardor of consuls who always like to communicate directly with the Department of State, and might lessen their initiative by causing them to feel that their re- H. Doc. 245, 58-3 3 34 PROMOTION OF TRADE INTERESTS. ports, after being prepared with great care, were liable to comment. alteration, and criticism by another branch of the foreign service. The other objection is the increased expense that would be entailed, as set forth hereinafter. Question 2. — As above stated, there is at all times the most cordial cooperation between the diplomatic and consular services in all commercial matters. The consuls secure ail the information they can from outside sources, and when they wish any facts that can be better obtained from the French Government, the embassy, acting in its diplomatic capacity, makes the necessary requests, which are nearly always cheerfully complied with by the Government. The French Government has no commercial attaches. One or two special ones have been at times appointed at Peking and at St. Petersburg, for instance, but not regularly attached to the diplo- matic stall' of the embassy. As to whether commercial attaches to an embassy would be useful in our service, in my judgment the usefulness would depend almost entirely upon the character of the appointees and the facilities placed in their hands. If the attache were a man of practical commercial experience, possessing a knowledge of the language of the country, and were allowed ample clerical assistance to aid in collecting infor- mation, collating, translating, annotating, and forwarding reports. etc., he could undoubtedly be of great assistance, as his diplomatic quality would enable him to communicate with certain officials, and with proper tact, he could cultivate intimate relations with subordi- nates charged with certain branches of the business who could render him useful aid. The valuable reports of military and naval officers assigned to embassies are examples of the important information and suggestions which can be obtained through attaches possessed of the requisite technical knowledge and devoting their labors to a particular subject. To command the serA T ices of men competent for such places, there would have to be ample compensation, and it would be necessary to establish a well-equipped bureau. All this would form quite an item of expense. Question 3. — If the embassy should undertake the work embraced in this question, there would be required one additional secretary, selected for his familiarity with commercial affairs, and having a thorough knowledge of the French language; a stenographer and typewriter capable of writing the two languages, and one or two addi- tional office rooms. The expense, therefore, would be about as great as if the position of commercial attache were created, and my judg- ment is that, if a change be made in the method now pursued, it would be better to assign commercial attaches. Horace Porter. Opinions of Consul-general at Paris. Xo memorandum on the subject of Department's circular of July 29 last, addressed to the diplomatic officers of the United States, on the subject of " Promotion of trade interests." would be complete were I not to acknowledge, with sincere respect, the unvarying cour- tesy, attention, immediate cooperation, and conscientious execution PROMOTION OF TRADE INTERESTS. 35 of all requests which this consulate has received at the hands of Gen. Horace Porter, American ambassador at Paris, and the secretaries of that embassy. If at any time, there has been any delay in obtaining information through the embassy it has been no fault of the ambassa- dor or his able and courteous secretaries. The requests, however, have been confined to the fewest possible number, and the embassy has been spared, so far as this consulate is concerned, all unnecessary trouble. In another part of this dispatch, reference is made directly to the embassy in connection with obtaining special information. It gives me pleasure, however, to testify to the very pleasant relations which exist between this consulate-general and the American embassy in Paris. Inquiries received at this consulate-general are of all descriptions, but those referring to business can be classified into four different groups. They come from citizens desirous of selling their products in France (sellers) ; from citizens desirous of purchasing French goods (purchasers) ; then we have American manufacturers, etc., Avho are anxious to learn certain processes of manufacture, etc. ; to these I shall refer as " manufacturer." Other citizens will ask for certain statistics, laws, and regulations (either governmental or municipal) ; also certain facts concerning corporations, etc. When a seller applies to this office for special information, the best source from which to seek material for reply is, of course, the trade interested in the article he wishes to sell. Facts desired will cover the approximate business, maximum and minimum; what goods are likely to compete with our American product; whether said goods are of home manufacture or imported — if homemade, whether the first material is imported or obtained in the country of production ; price of first material, comparative quality, if imported, cost of transportation, duty, and other expenses. Then it will be calculated what chances our article would have against the similar article already in the market. The question of packing and how payments are made are also interesting points. There is no need of diplomatic help in the case of a seller, and the consul, on account of his daily contact with wholesale and retail dealers, business agents, agents of sellers and of purchasers, is in the best possible position to get at facts. In the case of purchasers, the task is much easier yet. To discover the best house, obtain catalogues, prices, conditions, etc., is somewhat easy. Diplomatic channels are entirely useless, again, in this case. As to manufacturers who wish to obtain inside information, among the numerous business men surrounding a consul he can always pick out several who are placed to get the facts. The consul has many occasions to be- of service to those who help him, and in the course of time the advantage is reciprocal. Diplomatic intervention in this case would be valueless. A government would not give, and could not consistently give, any information likely to injure the business of any of its citizens. Should the diplomatic channel be used, the demand would have to be made in writing, and this demand would then go from bureau to bureau, studied all the way quite closely, and 90 per cent of the answers would be so incomplete that the} 7 would be of no practical service. But governments know nothing of the private affairs of manufacturers. The trades here are protected by their Chambres Syndicales. These are very active — 36 PROMOTION OF TEADE INTERESTS. at their meetings all matters interesting their trade are discussed — and there is no doubt that the creation of a commercial attache to an embassy would be noticed and criticised, with the result that the alarm would be given from Paris to all parts of France. The infancy and adolescence of our country are things of the past. In its full-grown commercial maturity, it can and does serve as a model to its European parent stem. Many articles which used to be exported to America are now manufactured there with prospects of being imported here. France has lost a great portion of her trade, and the French manufacturers and dealers are jealously guarding their secrets from foreigners, but more particularly in the case of America and Germany. When inquiries are made touching statistics, laws, regulations, etc., it may happen (although very rarely) that answers will have to be obtained through the embassy. It is rare, because most of the statistics, all laws, and most regulations are printed and published. It is only when other means have failed that, as a last resort, the good offices of the embassy are requisitioned. This consulate-general corresponds freely and directly with the Direction Generale des Douanes (the custom-house officials in Paris), all chambers of commerced all Chambres Syndicates, all prefects, mayors, directors of institutions, all departmental and municipal offices, and sometimes with chiefs of bureaux of various ministers. It must be remarked that, in most cases, information which is important for us to obtain is equally important for the local industry interested to keep from us, and it is always by going quietly about it that something can be obtained. The Department very judiciously says : The consular service has made a general and very marked advance in its utility in this direction in recent years. So much so, in fact, as to have become the object of imitation and emulation on the part of the most prominent indus- trial nations, etc. This is very fair to the consular service, and it would not be sur- prising at all to find among our imitators some of the nations who have a " commercial attache." In fact, a commercial attache would be held in suspicion, and for the same reason that a Government would not furnish any vitally valuable information on military or naval affairs to a military or naval attache, they would keep carefully away from a recognized " commercial attache " what they might realize to be secret con- cerning national industry. The foregoing remarks concern inquiries from American citizens desiring reports on special subjects. A consul is the best American authority to make a report on any matter touching the trade or industry of his district, and it is not clear how a commercial attache stationed, for instance, at Paris, could undertake to correct reports from St. Etienne on ribbons, from Calais on laces, from Eoubaix on woolens, from Grenoble on gloves, or Lyons on silks. The Department continues: You will appreciate the fact that, to prevent friction with the consular corps and to preserve the spirit of initiative, which is one of its most valuable fea- tures, etc. It is obvious that, to feel that his report goes direct to the Depart- ment, encourages a consul to put forth his best efforts, while the idea PROMOTION OF TRADE INTERESTS. 37 that his report must be forwarded to Paris to an official who, out of honest zeal or simply personal pride in justifying his official existence, may cut out portions of the reports or change them to suit his indi- vidual ideas, is not a system calculated to stimulate his spirit of initiative. From my daily experience in collecting information for the Depart- ment, and replying verbally and by letter to the numerous applicants for information, I have never had but one view of the matter under report. In my relations with business men of various nationalities, I have heard nothing but unqualified praise of the consular system of the United States. It is, indeed, regarded as a model auxiliary to trade interests. So thoroughly is the position of an American consul understood in France in this respect that questions as to trade matters rarely if ever excite suspicion in the mind of Frenchmen of business. No fear of political motive is ever evinced, and confidence, I am glad to say, is always shown in the Government I have the honor to repre- sent as a consul-general by the business community of Frenchmen who are in my consular district. Were any changes in the s}^stem as at present in operation to be made, I should, as a consul and as an American, be greatly afraid that the change would not be for the better. On the contrary, it seems clear that the change more acutely necessary to benefit the promotion of trade interests is in the direc- tion of enlarging the clerical staff of the American consulates abroad, and more particularly in the large towns, where trade interests are centered and where the clerical staff of the consulates is notoriously inadequate. This is the plan for the coordination and improvement of exist- ing facilities for the collection of commercial intelligence and the promotion of American trade interests abroad, which I have the honor to respectfully recommend and urge : If, however, a commercial attache to the embassy be created, then it seems to me that such an officer would fulfill his mission to the best advantage as a separate official, working independently, directing his own staff, and responsible alone for the satisfactory performance of the system without reference to the present consular system. If such an officer were to be attached to the consular service, instead of being connected with the diplomatic corps, the change would, in my opinion, be less abrupt, less likely to excite suspicion, and have the merit, among other things, of seeming to follow in principle, at least, the American plan of a more effective consular trade informa- tion bureau, rather than be an experimental imitation of the system of another power, how T ever friendly and sympathetic that power may be. John K. Gowdy, Consul-General. Paris, September 23, 1904. Opinions of other Consular Officers. BORDEAUX. I have the honor to acknowledge the receipt of your circular, " Pro- motion of trade interests," asking my opinion as to the advisability of making the consular service an appendage of the diplomatic corps. 38 PROMOTION OF TRADE INTERESTS. The consular service of the United States is. in my opinion, already the most overworked and poorly paid of any branch of our civil service. Aside from the necessary supervision of the State Depart- ment, it is subject to the behests of the Treasury Department, the Agricultural Department, and the Department of Commerce and Labor. The work of this consulate, for instance, has been more than doubled by the action of the Agricultural Department under the pure-food law, without an increase of clerical force. It was about all we could stagger under before, and this additional labor has necessitated great neglect of the regular work of the office. Every increase in the number of Departments which have the right to com- mand the services of the consul of necessity greatly increases his labors. The union of the consular and diplomatic services would give the consul in every commercial country two or three new superintendents. ■ At present, the consul has some power of self- protection, not being required to undertake to answer inquiries which would interfere with the regular work of his office. Thus when the consul at Bordeaux was asked to report in horsepower units the im- proved and unimproved water power of all the streams in this con- sular district, embracing the myriad rivers and rivulets flowing north- ward from the Pyrenees. I felt quite justified in replying that, unless given a scientific equipment equal to that required for the Xica- raguan survey, a year's time, and some millions to defray the ex- pense. I could not undertake the task. There are thousands of other inquiries not so all embracing as the one mentioned above, perhaps, but of a nature to require the time of one clerk to gather the proper data for replying thereto. It should not be forgotten that the success of our consular service is mainly due to the individual initiative of our American consular officers, not to any system of clerical control. That it is infinitely superior to scientifically elaborated systems of machine-made officials nobody pretends to deny, and the chief reason of this superiority is the individual independence and initiative o| the officers comprising our consular force. I recognize the temptation which confronts everyone connected with the administration of an official organization to reduce its parts to interdependent regularity, but the consular service is exceptional in its character, and it forever must be dependent for its success on its unrelated units. The conditions under which it acts are not under the control of our Government. Consuls have no authority to en- force any demands they may make in the name of their Government. They must rely for success upon their individual power to induce the subjects of other governments to cooperate with them. Such work can not be systematized and plotted in advance any more than can the labors of a judge or lawyer. If the American consul is re- duced to the position of a mere clerk, the efficiency of our consular service will, in my opinion, be greatly reduced. Xothing needs revision more than this service, but it can not be done through imita- tion of foreign services, which, under infinitely more favorable con- ditions, have resulted in less efficiency. In France, at least (I do not speak of other countries, but believe the same to be true throughout Europe, except Russia and Turkey), there is another reason why commercial inquiries should not be con- PROMOTION OF TRADE INTERESTS. 39 ducted through Government channels, which any connection with the embassy would entail. In France there is a universal apprehension that Government inquiries may result in increased taxation, which makes it easier for a consul to obtain specific commercial information on his personal responsibility than for the French Government to do so. The reason is plain. The French merchant or manufacturer has no fear of increased taxation from the consul's inquiry. From these and other not less patent considerations, I am clearly of the opinion that the attachment of the consular to the diplomatic serv- ice of the United States would result in the gravest injury to Ameri- can commercial interests. Albion W. Tourgee, Consul. Bordeaux, November 2. 190 Jp. CALAIS. In reply to Department's circular, tC Promotion of trade interests," I beg to submit the following : After six and one-half years' experience at this consulate I am en- abled to say that I have never had any difficulty in obtaining any information that I sought in compliance with a request from the Department. However, questions might be put that would necessi- tate the assistance of the embassy, but for the present I can only say that no such situation has arisen. I know of no information that might be sought in this consular district Avhere even the assistance of the embassy would be of value, as, for instance, manufacturers have their secrets in fabrication that no force can make them yield up. When I have applied for statistical information, it has always been graciously furnished. In writing this report I am aware of the fact that other conditions may exist in other consulates, but I can only report as to this one. This consulate is one which has a large export of machine-made lace to America, but has little or none in the way of imports from America, and I think that an American consul at this port who is ambitious to promote trade interests in the way of imports from America will find little gratification for his ambition. James B. Milner, Consul. Calais., October 1%, 1904. GRENOBLE. In reply to circular, " Promotion of trade interests," I beg to say that, to this consulate, the proposed action of bringing the diplomatic and consular services into closer relationship in common effort to gather commercial statistics and further the expansion of American trade, seems to be both important and opportune. The constant increase of our trade in the world's markets, the car- rying of our surplus products into all open fields, the spreading of new methods and new appliances in betterment of the world's condi- tion, call for continuous and persistent efforts in every direction and in the best possible ways. To further this end and to accomplish even more than is being done at present, it would seem to be eminently 40 PROMOTION OF TRADE INTERESTS. practicable that the Government utilize all the resources at its com- mand through the diplomatic as well as the consular service. This consulate stands ready to comply with any instructions and to follow up to the best of its ability any suggestions that may come to it from the American embassy in Paris, thus working together for the common end. For the most part, the French officials and business houses of the three departments comprised in this consular district have been cour- teously disposed to furnish us such information and statistics as we have from time to time sought of them, the only exception being in the case, two years since, of the prefect of the Department of the Upper Savoy, who declined giving information as to dairy machinery, etc., on the ground that it might interfere with their own special industry. A personal interview with this official, whom I had not met, might have resulted otherwise. C. P. H. Nason, Consul, Grenoble, October <26, 190 J^. HAVRE. The cooperation of the American diplomatic and consular services in the promotion of our trade interests in foreign markets would un- doubtedly increase the efficiency of the machinery now in use by which our manufacturers and exporters are kept informed of the business conditions of other countries. If there were a diplomatic officer attached to our most important embassies and legations whose duties were confined to commercial matters, he not only would be of great assistance to our consular officers in the preparation of their reports by obtaining quickly full and up-to-date official statistical data at the fountain head, but he would also be in a favorable position to gather commercial and indus- trial information of vital interest to our manufacturers and exporters. In France, the official publications, with the exception, perhaps, of those relating to the operations of the custom-house, generally contain statistics one or two years old. When a consular officer is in need of late data or of official information not published, he must, under the present conditions, avail himself of the services of the embassy at Paris, which are always cheerfully and readily given, but owing to the delays which arise in the Government bureaus, a long time must elapse before a repty is received. A commercial attache, however, who had established friendly relations with the French bureau offi- cials in a personal visit could not only procure the information de- sired quickly, but it would be more exhaustive than if it were written in an official communication. Paris may be said to be the center of the French economic world, for in the capital city most of the industrial and commercial establish- ments of the country have either their head offices or are represented there by agents. Therefore, as remarked above, an American com- mercial attache would have the facilities for getting valuable infor- mation or at least suggestive hints, which could be investigated either by himself or by the consular officers in whose districts the manufac- turers or principal houses are located. In Paris, also, a commercial attache would have access not only to the most complete public libra- PROMOTION OF TRADE INTERESTS. 41 ries in France, but also to those of commercial, industrial, and scien- tific institutes like the Musee Social, the American Chamber of Com- merce, etc., and to those of the principal trade and industrial syndicates. In the event of the Department deciding to appoint commercial attaches, I would suggest, in order that their work be effective, that they be given the title of secretary — second, third, or fourth, as the case might be. This would be almost a sine qua non whenever they were obliged to apply for information for statistics to any government official, ministry, or department. The attache or secretary should be a man of good address and pos- sessed of savoir-faire, without which but little can be accomplished in Europe. He should be capable of speaking fluently, and of corre- sponding correctly in, the language of the county where he is sta- tioned, and his salary should be large enough to raise him above the status of a simple emplo} 7 ee. If instructions from the Department of State to prepare reports upon any particular matter were transmitted through an embassy having a commercial attache, this officer, being familiar with the commercial, maritime, and industrial interests of the country in which he resides, would know best the sources whence to obtain the information desired by the Department, so that the Department's instructions would be sent to the consular officers in whose districts the matter could be the most thoroughly investigated. The transmission of requests for reports through the embassies or legations would not tend to weaken the spirit of initiative, as reports asked for, as well as those which may be made by the consular officers without special instructions, could be transmitted and printed over each individual consul's name or signature as now. If by any means the work which is at present being performed by our consular corps, looking toward the preservation of the commercial and industrial welfare of the American people, could be improved, I would recommend that at least a trial be made. A. M. Thackara, Consul. Havre, September i, 190 If.. LA ROCHELLE. I have the honor to acknowledge the receipt of the circular, Pro- motion of Trade Interests. Answering the questions from a con- sular point of view, and especially as those answers might apply to my consular district, I most respectfully suggest as follows : 1. For general information concerning France, diplomatic officers are in good position to obtain special figures, facts, etc., but it seems to me that the consul-general at Paris, who is necessarily in close touch with the great business interests in the capital, is much more advantageously placed to suggest to consular officers or to obtain special or general information. Without desiring at all to flatter our consul-general at Paris, Mr. Gowdy, judging from the respect and kindly disposition toward him of French officials, any information would be as promptly accorded to him as to a diplomatic officer. Apart from this, however, there is more or less a tendency in France 42 PROMOTION OF TRADE INTERESTS. to consider the American or any other consul as more than a simple business agent of his country, this being clue, perhaps, to the fact that the functions of a French consul have no definite dividing line from those of a diplomatic officer. From another point of view, it would seem that, outside of the consul-general, reports of matters that pertain very generally to com- mercial conditions may be very difficult to substantiate, while to the contrary, reports on matters dealing directly with a particular consu- lar district could be made more intelligently and more correctly by a consul on the field. During my service, I have endeavored to limit my reports exclusively to matters which concern my consular dis- trict, for had I wished to generalize or occupy myself with special matters in other districts, there would be 300 reports a year to make. 2. This question as a whole I am not capable of , answering intel- ligently, and consequently, I make no comment except on the last question. While it might be of advantage in some countries to have a com- mercial or industrial attache, whose duties would keep him at the capital and in the embassy or legation, I do not see how it would be of any advantage in France unless such an attache, who could be connected with as much success with the consulate-general as with the embassy, should have the largest possible liberty, with means of traveling, visiting industrial centers and various ports. In fact, the attache should have a special mission if he is to exist, and he might supplement very efficiently the work of the consuls in supply- ing them with figures, facts, or suggestions for their reports. One of the great drawbacks to consular efforts along this line is the expense of traveling, for which no provision is made in our serv- ice. Should each consul be permitted, at the expense of the Gov- ernment, to visit the trade centers of his district and make reports on the conditions existing, he being personally known already to the exporters and importers of his district, much good could be accom- plished. In such an event the consul-general, who is in the very center of commercial activity, would be in a position to suggest greater detail or exactitude on the part of any or all reports concern- ing any particular matter which would pass under his eye. George H. Jackson, Consul. La Rochelle, September 6, 190 ^ LIMOGES. I have the honor to acknowledge the receipt of circular of August 4 and its inclosure. I would respectfully state that, after an experience of sixteen years in the consular service, I have found that the most satisfactory methods of promoting closer commercial relations between American exporters and foreign countries are for the consular officers to keep themselves in the closest touch with the business interests in their particular districts. It would be exceedingly difficult for an ambassador to obtain such commercial information as the business man of the twentieth century requires. He would be forced to depend upon reports, statistics, and PROMOTION OF TRADE INTERESTS. 43 data gathered by the country to which he is accredited, and often- times these documents are not officially printed and put into circula- tion until several years after the material to make them has been collected. It is certainly invaluable to a consular officer to have the kindly assistance of his ambassador in obtaining data from the ministries of the countries in which they are both stationed. My own ex- perience has been that such information is given with pleasure when- ever desired ; in fact, the cooperation of the embassies and consulates has always been willingly given; whenever I have had occasion to ask for any information from any of them our relations have been very cordial. The condition of the crops, new industrial enterprises, the state of the markets, as well as the sources of supply and demand, and the news of what is going on, and the prospects of trade, can be obtained by the Government officer in the locality ; the man on the spot should be able to judge what is desired by the country he represents, and the public press, trade journals, commercial and industrial news will afford him immediate and accurate matter for reports on all subjects interesting his compatriots. The ambassadors could be of great assistance in pointing out the effects of laws and changes made in or by commercial treaties, which are always enacted at the capital of the country where he has his. residence. The best assistance and aid that can be given American consuls toward promoting* and improving the trade relations between Amer- ica and foreign lands would be ample supplies of foreign commercial and industrial trade newspapers of all kinds, with the necessary facilities to collate and forward facts and data that will interest their countrymen. Walter T. Griffin, Commercial Agent. Limoges, August 24, 190Jf. LYONS. I have received the circular, " Promotion of trade interests," and in response to the request for my opinions on the matters discussed therein, I have to say : I can see no limitation upon the usefulness of the consular service from lack of diplomatic status or difficulty in obtaining official infor- mation at first hand. There are no directly ministerial officers in Lyons, but the officers of the National Government, as well as local officials and all manufacturers and merchants, have received me readily whenever I have had reason to call on them in the discharge of my official duties. The requests I have from time to time ad- dressed to them for information have always been cheerfully com- plied with. Our consular service seems to me now to be well qualified to collect and to report to the Government any and all information demanded of a commercial or industrial character. In response to the matters spoken of in Section I of the circular, I would suggest : 44 PROMOTION OF TRADE INTERESTS. I can see no advantage in having snch dispatches as are sent to con- suls for trade statistics or for other information delayed in their pas- sage by stopping them at the embassy, unless there be there a com- mercial attache who would be especially charged with the duties of passing upon such dispatches. Such an officer, stationed in the capi- tal city, would soon acquire a large fund of information concerning the commerce and industry of the country which could not be pos- sessed by the embassy, as now constituted, or by any single consul. Xor could the consuls scattered over the country obtain such general knowledge of the commercial situation, as a whole, as an officer located in the capital giving his entire time to the duties of his posi- tion. Such officer might also, with sufficient clerical help, assume the task of revising the consular reports sent to the Department of State, coordinating them and communicating with consuls, and asking sup- plementary information such as would be suggested to him from perusing all the reports. After this. I think the original reports, as furnished by the consuls, should be forwarded to the Government, and that the connection between the consular service and the Depart- ment of State should remain unchanged. I suggested, four years ago. and have since repeated several times, the advisability of having a commercial attache of our country at the American embass}^ in Paris. My reasons for this suggestion were that, in nine cases out of ten. when I apply to a business man for information about his busi- "ness. I have been informed that he represents some one in Paris. When I have endeavored to introduce some manufacture sent me by an American. I have been told that I must apply to Paris. This is applicable to almost every branch of industry. The principal busi- ness office is in Paris, and retailers here receive their supplies from that city or are direct agents for some Paris house. In Paris, also, are located agents for the great German and English houses, and it is there that a wide-awake commercial attache would have an oppor- tunity of learning and meeting the business methods of foreign coun- tries. With hardly an exception, the great nations of the Avorld have mili- tary attaches at their foreign embassies. It seems to me that it would be of infinitely more service and substantial benefit to the country if a commercial attache were substituted for this military adjunct, which really belongs to a former generation rather than to the present. Frequent congresses are being held all over Europe for the considera- tion of matters of commercial and industrial importance which a commercial attache would attend, and where he would be received with honor, and could, without doubt, obtain information of great use to the business interests of our common country. I should think that one commercial attache, stationed at Paris, could look after the interests of France. Switzerland, and Belgium. Johx C. CYtvert. Consul. Lyons. September J. 190 J^. 31AKSELLLE. I have read with attention the Department's circular of July 29, addressed to the diplomatic officers of the United States, and in reply to your request for my opinion thereupon, have to express my PROMOTION OF TRADE INTERESTS. 45 approval of the purpose contemplated, although differing from the tentative suggestions as to ways and means. Briefly stated, I would reform the consular service and increase its effectiveness from within rather than from without. The facilities ,now controlled by con- sular officers for the collection of commercial information may be made to include all those controlled by diplomatic officers b}^ simply laying down rules governing the relations and reciprocal obligations of both bodies. As a matter of fact, the diplomatic officers are generally most obliging in matters of this kind without any rules. The natural agents for executing the plan proposed by the Depart- ment are the consuls-general, whose present authority over the con- suls under them is merely nominal. The appointment of commercial attaches outside the consular service and exercising a degree of authority over the consular body would duplicate an existing mech- anism for furthering trade interests and very probably lead to friction. It is hardly probable that diplomatic officers could per- sonally review and recast consular reports submitted to them, and the delegation of these duties to their secretaries would be open to more serious objections than those raised against naming commercial attaches. Consular officers are custodians of papers and invoices covering every pound of merchandise exported to the United States; they not only see the general trend of events, but are in direct contact with many of the details. This is a great advantage to them in carrying on any investigation, and one which no special officer, however able, would enjoy. Consuls are familiar with their work and require only additional authority and clerical aid in order to take up with enthusiasm any new measures which the Department may desire to inaugurate. It is presumable that the discretion of consuls-general as to mat- ters likely to embarrass diplomatic officers Avould be at least as great as that of any special agent. In any case, it would be a simple process for such officers to lay before ambassadors and ministers a weekly list of topics under investigation, and to submit results for special review in all delicate matters. If various foreign governments have created a class of commer- cial attaches, it is because their consular organizations are unlike that of the United States. I have read many comments in regard to the work of these attaches, and little of it has been favorable. They are so few in number, and cover such a vast field in each case, that their reports are of little practical value. Their studies- of industrial conditions are more or less instructive as trade literature, but generally reach the public long after the occurrence of the events describecl. The work they accomplish may be left safely to the technical journalists. The rapid increase in the direct correspond- ence between American business men and their consuls abroad goes to show that our business interests want to feel that they have an ally in each large community abroad from whom they can procure reliable and conclusive facts in regard to specific matters. The Department has expressed itself with conviction in regard to the spirit of initiative now prevailing in the consular corps. If this spirit exists it is due largely to the freedom of restraint enjoyed by consular officers in their correspondence with the Department. Against this initiative is to be set a good deal of duplicate reporting, 46 PROMOTION OF TRADE INTERESTS. occasional looseness of statement, and something of a disposition to report the merely interesting rather than the important. If reports as at present prepared are to be filed with the Department, accom- panied by notes and amendments proposed by a supervising officer abroad, then the Department will either have twice as much matter to read and edit as at present, or else the foreign supervision will degenerate into an empty form. I am inclined to suggest clothing the foreign supervising officer with a considerable amount of real authority to harmonize and complete reports, trusting to his tact and intelligence to keep alive the activity and alertness of the consuls under him, while at the same time securing those advantages which the Department seeks. Robert P. Skinner, Consul-General. Marseille, September 1, 190 1^. NANTES. I have the honor to acknowledge receipt of your circular communi- cation of July 29, addressed to the diplomatic officers of the United States relative to the " promotion of trade interests." You instruct me to transmit to the Department an early expression of my views on this subject, and I have, therefore, the honor to report that, during a long and active experience in the consular service in Switzerland, Spain, and France, I have never, at any time, had the least difficulty in securing any commercial or statistical information that was avail- able in either of the countries mentioned, and I have never, at any time, found the lack of a consul's diplomatic status a hindrance in securing such information. Moreover, I have never, at any time, found it necessary to call upon our ministers or ambassadors to aid me in securing such information, though I have no doubt if I had done so the desired assistance would have been at once cheerfully and effectively accorded. * In the circular communication of July 29 you observe that the spirit of initiative is one of the most valuable features of the work of the American consular corps. Nothing could be truer than this. It is the strong individuality of our consular reports that has served to make them interesting and valuable. Our consuls have not only been permitted but encouraged to present their own ideas in their own way; they have felt that they were appreciated at the Depart- ment of State, and the fact that they have thus been permitted to communicate directly with the Department has had at all times a stimulating effect. If, therefore, the Department wishes to -preserve the spirit of initiative and individuality in consular work, I am not sure that this would be accomplished if the consuls were required to submit their work to our diplomatic agents with the knowledge that these officers would edit and annotate their reports, and perhaps even refer them to others for revision and elimination. In so far as nry own experience goes, I think our present system of consular work is at once practical and effective. Of course, if there are countries Avhere consuls are unable, through their lack of diplo- matic status, to secure desired statistics and other commercial infor- mation, it seems to me that our diplomatic representatives in those * PROMOTION OF TRADE INTERESTS. 47 countries would not hesitate to aid them in such instances, particu- larly if instructed to do so by the Department of State. My own belief is that the consul accomplishes his most interesting and valu- able work through personal observation. By looking carefully about him, by reading the commercial papers at home and abroad, and by otherwise personally looking out for business opportunities, he gets information and ideas of practical value which he likes to transmit directly to the Department of State, with the idea of getting full credit for his work. I have also given some thought to the question of so-called " com- mercial attaches ' ? in certain countries, but I do not see how any such officer would be of particular assistance to the consular service in France, Spain, and Switzerland, the only countries in which I have had any experience. As a' matter of fact, since you have instructed me to express my opinion in the premises, I believe the commercial interests of the country will be best and most effectively served when intrusted to an experienced consular corps, working under the direct instruction of the Department of State. When there is necessity for new commer- cial treaties or for the revision of old treaties, then, it seems to me, the diplomatic agents should be instructed to consult principal con- sular officers, but ordinarily — I repeat that— in so far as commercial reports are concerned, I believe the consular corps will do better work when acting independently under direct instructions from the De- partment. Benj. H. Bjdgely, Consul. Nantes, August 23, 190 ^ NICE. With reference to the promotion of trade interests, my experience has been that, during the past few years, the exigency of our mer- chants and manufacturers in making inquiries with the view of ex- tending their trade has vastly increased, and in many cases — in fact, in most cases — the inquiries are such that a satisfactory and complete statement in reply would constitute a special report. The same state of things must of necessity exist in all the principal consulates. I do not think that a consular officer speaking the language of the country to which he is accredited and maintaining the proper rela- tions with the different authorities need encounter much difficulty in obtaining official information. I think that difficulty is more likely to arise with regard to details and particulars touching commerce and trade of a nonofficial character. But even here, I think that patience and tact produce a favorable result. The extent, however, to which inquiries on commerce and trade are now being made, the present status of our consular service with re- gard to its personnel, and the rapid development of our export trade (and it is, in my opinion, still in its infancy) would certainly seem to indicate that the addition of commercial attaches to our embassies and legations, charged with the task of preparing special reports on commerce and trade of a complete and exhaustive character, would result in very great benefit to our commercial expansion. It is a mat- ter universally^ conceded that never has any consular service any- 48 PROMOTION OF TRADE INTERESTS. where afforded such valuable aid to the development of the export trade as the American service during the past few years, but this de- partment of consular work can reach its maximum of coordination and thorough usefulness only by means of such an adjunct as would be afforded by a properly constituted commercial department, en- abled to give all its time and energy to this special branch. As to the consular officers of other countries accredited here, I may say that the demands made upon them in the way of special trade re- ports are practically nil. It may be added that it would also appear to be the general opinion that such work is not, strictly speaking, " consular," and the replies to trade inquiries are, I think, confined to the mailing of reports of chambers of commerce or to the recommen- dation to apply to firms for the information required. The establishment of commercial departments at embassies and legations would, I am convinced, open up a prodigious amount of labor. Our manufacturers are far removed from foreign markets, and have little or no knowledge as to which markets or which goods they have to compete with. Their inquiries are such that a matter has to be investigated, so to speak, from A to Z, whereas our competi- tors in trade, nearer by, already have the knowledge afforded by their proximity, by time, and experience. This department of the consular service, useful as it may be at present, will of necessity always be desultory in its character, depending entirely upon the competency, ability, and activity of this or that individual. Attilio Piatti, Vice-Consul in Charge. Nice, August 00, 190^ RHKI3IS. In conformity with instructions in circular dated August 4, request- ing an expression of views relative j:o circular dated July 29, to American diplomatic officers in regard to devising a plan for the improvement of existing facilities for the collection of commercial intelligence, I have the honor to observe that, in my opinion, any plan that would enable consular officers to get information at first hands would be excellent in itself; and any method that would systematize the work to be done and prevent, for example, two consular officers from doing exactly the same thing and reporting the same informa- tion, would result in a great saving of labor and be conducive to the accomplishment of much greater results. If the plan indicated b}^ the Department circular can be perfected and put in execution, it would seem to be an excellent arrangement. If a central bureau of commercial information could be established at the embassy or legation of the United States at the capital of the foreign country, working in harmony with the consulates therein, under the supervision of the diplomatic officer, and with a competent head who could give all his time and energy to the collection of trade intelligence, and who would have the advantage, by means of his connection with the embassy or legation, of getting information at first hands, it would be certainly a great improvement over the pres- ent manner of isolated action. PROMOTION OF TRADE INTERESTS. 49 The advantages of a central bureau would be many. Its chief would be furnished with all the official statistics of the foreign gov- ernment as they appear, and his office would soon be so Avell supplied with these and with other intelligence that he would know just where to apply for any particular information desired. Many reforms would doubtless suggest themselves from time to time. For example, much time is taken at all consulates in replying to circular letters from trade journals, business firms, and individuals soliciting lists of names and addresses of merchants and dealers in different lines of trade. If a small business directory should be prepared under the direction of the central bureau from information obtained from the various consulates, containing the names of principal merchants and dealers in different lines in the cities and large towns of the country, and if these directories, which could be revised from time to time, should be sold at cost or given away to applicants for such informa- tion, a great deal of time and labor Avould be saved. But the greatest advantage would be, no doubt, in having the central bureau of commercial statistics and information at the capital of the foreign country, with a competent chief in charge, who would be at liberty to give all of his time to the work, and who, by virtue of his official connection, would have much greater facility in obtaining accurate and complete information than the consular serv- ice unaided. William A. Prickitt, Consul. Rheims, August 25, 190Jf. KOUBAIX. I have the honor to acknowledge the receipt of Department cir- culars concerning the promotion of trade interests elated, respec- tively, July 29 and August 4, 1904, I have great hesitancy in expressing views which may be regarded by the Department as erroneous. The opinions advanced, however, are based upon my estimate of the temper of the community over which I have had consular jurisdiction for a number of years. It would seem to me that the active and open cooperation of the diplomatic branch of our service with our consular officers in their work of protecting and advancing commercial interests, work which by the force of circumstances must be largely done in detail to be effective, would rob the diplomat of a certain degree of his prestige and curtail his influence in the wider field of diplomacy. The effective aid now rendered to American commerce by our con- sular officers is looked upon in France with increasing apprehension. Information of a nature to build up our commerce is more jealously guarded than when competition was less active, and it is probable that the establishment of such relations between the diplomatic and consular branches of our service, as outlined in Department circular of July 29, would defeat the object which it is intended to serve. At present, information refused to a consul is frequently accorded to a diplomatic representative as a courtesy. Should American diplomatic officers become known as instigators and directors of commercial investigation, it is to be feared that they would soon be H. Doc. 245, 58-3 4 50 PROMOTION OF TRADE INTERESTS. met with the same courteous assurance of aid and the same non- fulfillment of promises that so frequently prove a stumbling block to our consuls. The inability of the consul in France to furnish full and correct statistics arises not from the fact that access to statistics is denied him, but from the fact that statisics, at least in this district, are not correct. This fact was ably set forth in the French Chamber a num- ber of years ago by Mr. Eugene Motte, present mayor of Boubaix, a deputy in the French Chamber, and one of the most influential manu- facturers in this district. It is possible that statistical bureaus charged with the revision of consular statistical reports might be created under the supervision of the diplomatic corps with advantage to the service. TV. P. Atwell. Consul. JRoubaix, August 22, 190 % ROUEN. With reference to your circular of August 4 last, in regard to the capabilities of the diplomatic service for the promotion of our trade interests, I have the honor to submit my response, which, I regret, is retarded on account of the confusion occasioned by the removal of this consulate to new quarters. My opinion, whatever it may be worth, as the result of the four years of my consular experience and the study of American trade in- terests, is decidedly in favor of such an innovation, which, far from destroying the spirit of initiative of the consular corps, would only add to its determination and zeal — at least that part of the corps which has the advancement of American trade at heart. It would gladly welcome any innovation that would help along the good cause in which consuls are engaged, not thinking of individual honor so much as American and American-trade honor. There is no doubt about it, or at least I have found it so in my ex- perience, that a consul, often through fear of a breach of etiquette, commits sins of omission for which, unhappily, American trade suf- fers, and it is possible that there are consuls who, in their zeal to carry out to the full every departmental instruction, commit sins of commission. For such sins, American trade also suffers. Both these evils of omission and commission could be remedied by the status and broad knowledge, respectively, of the diplomatic service. It is easy to see that, for successful competition, the best merchant leaves no stone unturned, and the rule applies to nations, especially at the present time, when " the extension of commerce, in its many forms, with a multitude of subsidiary interests, has admittedly become one of the chief aims of world diplomacy." Certainly, the greatest improvement, outside of the establishment of the Department of Commerce and Labor; in the advancement of American trade was the beginning of the daily publication of the consular reports in January, 1898 ; but if the great capabilities of the diplomatic service could be brought into cooperation with existing facilities for the collection of commercial intelligence, there would be an improvement in accuracy and an extension of information PROMOTION OF TRADE INTERESTS. 51 which would, in the development of our commerce, equal, if not sur- pass, the elimination of delay accomplished when the daily reports came into existence. There may be diplomatic officers who would object to such an in- novation as affecting the dignity of the service. I met a consul of a foreign power not long since who remarked that he considered him- self above tradespeople, and that certainly his office should not be a servant of them. If a foreign consul thought that, would an Amer- ican diplomatist think so? The most excellent reports published from some of them would seem to answer negatively, and to give as- surance that they would be glad to aid their country in the great trade struggle. Surely, a diplomatic officer is as much an ambas- sador of trade as an ambassador of any other interest and should be the guardian of his country's commercial concerns as well as of its other requirements. Thornwell Haynes, Consul. Eouen, September 20, WOIf. ST. ETIENNE. Pursuant to instructions contained in circular dated August 4. I have the honor to submit the following memorandum on the subject: The proposition to utilize the diplomatic service for the promotion of trade interests will meet, without a doubt, the unanimous approval of consular officers of experience. That the diplomatic service, as at present constituted, can not un- dertake to act as a commercial agency is also evident, and the plan for establishing commercial attaches at the more important capitals seems to be well conceived. That such attache should be a part of the staff of the legation or embassy rather than that of the consulate-general would seem advisa- ble for the reason that, in the former case, the attache would have the benefit of at least a quasi-diplomatic standing, by virtue of which access to government departments and bureaus would be facilitated. Such being the case, the commercial attache would not only be in a position to consolidate, verify, and supplement a certain class of consular reports, but, reciprocally, might easily be an invaluable aid to consuls, preparing special reports, who frequently find themselves in lack of pertinent information or statistics which are obtainable only at the capital. This latter suggestion is especially applicable to France, where there is but one adequate source of information, be it general or particular, and that is Paris. The custom-house at St. Etienne, for instance, can not give more than an approximate esti- mate of the imports and exports of the St. Etienne district, seeing that a large volume of the business passes through other custom- houses. Much less can the business of the consular district be esti- mated. The consular invoice book shows approximately three-fourths of the value of silk ribbons exported from St. Etienne to America ; the rest (one-fourth) are invoiced at Paris, and the totals of this com- merce can not be found elseAvhere than in the proper bureau of the ministry of commerce at Paris, to which local consuls have no access 52 PROMOTION OF TRADE INTERESTS. except at great inconvenience and by special favor. Thus it may be seen that, while a commercial attache would have important duties, exclusively his own, to perform, and others in which he would be materially aided by the consular service, he would at the same time be able to render invaluable service to them in the way of increasing the accuracy and completeness of reports pertaining to their local districts. While the headquarters of a commercial attache should be- with the legation or embassy at the capital, he should by no means be prohib- ited from extending his investigations to the limits of the diplomatic jurisdiction, and in this work again the consular service would render its assistance to their mutual benefit and the promotion of trade interests. There are other favorable comments Avhich might be made and perhaps some objections; there may be even difficulty in securing a satisfactory personnel for posts where the requirements are so exacting, but in principle I can not too heartily indorse the " at- tache " proposition, and I believe that, once the system is in working order, the results will amply, justify the undertaking. Hilary S. Brunot, Consul. St. Etienne, August 30, 1904. GERMANY. Report from the Embassy. Embassy of the United States, Berlin, October 7, 1904. I have the honor to acknowledge the receipt of your circular in- struction of July 29 last, requesting me to prepare, for the information of the Department, a memorandum upon the capabilities of the diplo- matic service for the promotion of our*trade interests in Germany. In reply, I have the honor to inform you that, as but few of the inquiries now sent to consular officers have come under my notice, I have only an incomplete knowledge of the sort of inquiries which would be made from time to time by the Department. Nevertheless, T do not believe that the staff of this embassy, on account both of its small numbers and lack of technical commercial knowledge, would be capa- ble, without additional assistance, of performing the programme described under question 1 of your instruction. I have little doubt, however, but that, if some proper technical person were attached to this embassy, he could, in the manner indicated, greatly aid consular officers in answering inquiries and add value to their reports upon these inquiries when once made. Undoubtedly, very much would depend upon the person chosen, who would have a position of some difficulty. Commercial customs in Germany, as well as the character of the German people, are, of course, utterly different from such customs in the United States and from the American character. Notwithstanding this, a commercial attache's usefulness would be much lessened and his position made exceedingly difficult if he was a naturalized German or of German parentage. Reticence and formality in commercial as well as other PROMOTION OF TRADE INTERESTS. 53 matters are far greater in Germany than in the United States. A cer- tain amount of suspicion often exists when foreigners, and especially foreign governments, make inquiries of a commercial nature. I may say that, owing to the enormous increase of American exports to Ger- many, this is probably especially true in regard to Americans. A commercial attache to this embassy would, therefore, need much tact, coolness, and capacity for fair and unprejudiced judgment. I be- lieve that, for such a commercial attache to have a maximum amount of usefulness, - he should be a man of some practical business experi- ence, as well as some scientific commercial training. At least, a fair knowledge of German would be indispensable to him. A man so qualified would have, in many ways, great advantages over consular officers, since he would be able easily to get at all the commercial publications of the German Government (a great many of which can not be accessible to, at all events, most consular officers) , and to get information from the central Government departments, either by written communications from the embassy or directly by conversation. The commercial society of the capital would afford him another and a valuable means of acquiring information. The governmental and diplomatic society in Berlin is strictly divided from the commercial, and undoubtedly if he is to get the best results, the commercial attache should associate as much as his time will allow with the commercial society. Through such purely social in- tercourse, he would be able often to get or to establish the means of getting information impossible or difficult to procure in other ways. I do not think, however, that a proper commercial attache would find it at all impossible to fulfill the few really necessary social duties incumbent upon him as a member of the corps diplomatique and also to make a wide circle of useful social connections among the com- mercial society. I believe that, through such a position, a commercial attache would have a great value, not only through technical knowledge, but through his being able to take a broader and often a more correct view of commercial affairs. Having such facilities for observation, I would suggest that he should also, with the approval of the ambassador, be allowed to initiate inquiries when he saw fit to do so. According to your circular, the reports of consular officers are only to be annotated or supplemented, their text being left intact. This would, I consider, obviate one of the principal faults alleged against the German commercial attaches, namely, that their reports, which are entirely written by themselves, are often too technical and ab- struse and more valuable to the student than to the merchant. Finally, the services in a consultative capacity of a commercial attache would often be valuable to the embassy in cases which fre- quently arise where technical commercial knowledge is really re- quired. I do not think that the addition of a commercial attache, with such functions as are specified in your instructions, would cause any em- barrassment to the embassy in its relations with the German Govern- ment. Of course, I assume that the commercial attache would, in all he did, be entirely under the supervision and authority of the ambas- sador, to whom entire discretion would be given even to defer taking any action wherever he saw fit until after he was able to place his reasons for this before the Department and obtain its decision. All 54 PROMOTION OF TRADE INTERESTS. the diplomatic missions at this capital have, as part of their regular duties, the collection of commercial information to a greater or less extent, and several of them have regular commercial attaches. These attaches are allowed to correspond with the consuls of their country and to receive reports from them, which they then utilize in prepar- ing reports of their own. So far as I have been able to learn, no sys- tem such as that proposed under question 1 of your instruction exists in any mission in Berlin, but what is practically very much the same thing, from this point of view, does take place as is above stated, though perhaps to a lesser extent. Regarding the information called for by question 2 of your instruc- tion, I have the honor to inform jou that I have had a conversation with one of the members of the imperial foreign office, from whom I have learned the following facts : There is no such cooperation between the diplomatic and consular services of Germany as that outlined in question 1 of your instruc- tion. The German Government has no industrial attaches, but it has com- mercial attaches and agricultural attaches. The former were first instituted in 1893, when, on account of the Chicago Exposition, a commercial attache was sent to Chicago, where he was attached to the German consulate-general. Since then, at various times, other commercial attaches have been appointed, so that at present there are eight in all, attached, respectively, to the consulates at New York (where he was moved from Chicago), Buenos Ayres, Valparaiso, Sydney, Shanghai, Pretoria, Constantinople, and St. Petersburg. Two more are contemplated, one in the United States and the other in India. These attaches, being attached to consulates, have no diplomatic status. In appointing them, it is the rule to avoid taking men from any Government service, the idea being that they shall not be " bureaucratic." Their choice rests entirely with the foreign office, which sometimes consults with the imperial department of the inte- rior, the commercial section of which is virtually an imperial depart- ment of commerce. Either men who have especially devoted them- selves to economic or commercial studies, secretaries of chambers of commerce, or business men are chosen, without any especial examina- tion. Unlike the members of the diplomatic and (professional) con- sular services, they are not considered as belonging to a regular serv- ice in which they will spend all their working years and then retire with a pension. Commercial attaches are engaged by contract, made with them individually by the foreign office and providing gener- ally for three years' employment, at the end of which they are at times reengaged for another three years and at times superseded by other men. It is in some cases considered beneficial to have a new man, who will perhaps be able to correct and supplement his prede- cessor's reports. Commercial attaches, though attached to a particu- lar consulate, can be transferred to any other consulate at any time. For defraying the salaries and expenses of commercial attaches, the Reichstag provides annually a lump sum, Avhich is placed at the disposal of the foreign office and which is used for this purpose, but entirely at its discretion as to choice, number, posts, etc., of commer- cial attaches. In practice, however, it must be said that information upon these subjects is usually furnished by the foreign office to the budget committee of the Reichstag. PROMOTION OF TRADE INTERESTS. 55 The salaries of commercial attaches vary acording to their posts, being 22.000 marks ($5,236) at New York, 19,000 marks ($4,522) at Shanghai, 15,000 marks ($3,570) at Constantinople, 21,000 marks ($4,998) at Buenos Ayres, 15,000 marks ($3,570) at St Petersburg, 18,000 marks ($4,284) at Valparaiso. 18,000 marks ($4,284) at Syd- ney, and 20,000 marks ($4,760) at Pretoria. At some consulates, the commercial attache is given an office in the consulate. He is fur- nished with stationery, and is allowed to purchase small articles, as books, etc., which may be necessary for his work, and for which he is reimbursed upon furnishing vouchers at the end of each year or at the end of his employment. He is further allowed a certain (vary- ing) mileage when he travels in the course of his duties, and (in the United States) $6 per day for living expenses when traveling. The commercial attache's duties are to make reports to the foreign office in regard to commercial matters, not merely in the district of the consulate he is attached to, but in the whole country in which he is. He is also expected to answer, so far as he can, the inquiries upon commercial subjects of German corporations or individuals. Fur- ther, he is obliged to keep a diary, in which a daily entry is made of all his reports, letters, and other work. At the end of each year, this is forwarded by him to the foreign office in order to show what he has done. The instructions to commercial attaches of the foreign office are addressed simply to the consulate, the attache's name only being mentioned in the inclosed dispatch. This is so that they shall be opened and read first by the consul. The commercial attache should also theoretically always submit his reports to the foreign office to the consul, who is not allowed to change them, but he may accompany them by a report of his own. Commercial attaches may correspond with all consuls in the country or with the embassy or legation, and these are all obliged to lend them their aid in so far as may be prac- ticable. They have, however, nothing to do with the reports of consuls (unless called upon for advice), who, if professional consuls, report directly to the foreign office, and if only honorary consuls report to the consul-general of their districts. The reports to the foreign office of commercial attaches, except such as are considered confidential, which are, in cases, communi- cated to the chambers of commerce, are published, as well as all other commercial information of the Government, in the publication en- titled wi Deutsches Handels-Archiv," which appears at irregular in- tervals. The more important reports are published sometimes in abridged form in the smaller monthly Handels-Berichte. Other re- ports are published in the Berichte uber Handel und Industrie, a small publication, which appears irregularly, while short commer- cial notes of more immediate importance, often furnished by commer- cial attaches, are published in the weekly Nachrichten von Handel und Industrie, which is modeled after our own Daily Consular Re- ports. All of these publications are issued by the imperial depart- ment of the interior, to which, after they have been read and used so far as desirable by the foreign office, the} 7 are referred. It may also be of interest to add some facts regarding the agricul- tural attaches already mentioned. These are stationed at Copen- hagen, St. Petersburg (where there are two), Bucharest, Chicago, New York, London, and Sydney, and are all attached to consulates, 56 PROMOTION OF TRADE INTERESTS. except the one at Bucharest, who is attached to the legation. They are appointed in the same manner and receive about the same salaries as the commercial attaches. The agricultural attache, however, is expected and has to show that he has traveled at least three months in each year. For this he is allowed an additional sum of 6,000 marks ($1,428). Usually, scientific foresters or specialists in agricultural subjects are chosen for agricultural attaches. For the rest, the same rules apply to them as to commercial attaches. H. Percival Dodge, Charge. Opinions of Consuls- general. BERLIN. In compliance with that portion of Department circular ^of August 4, " Promotion of trade interests," which requests an expression of the view of consular officers concerning the plan outlined in its cir- cular of July 29 to the diplomatic officers of the United States, whereby it is proposed to render the diplomatic service more active in the promotion of American trade interests, I have to respectfully report as follows : While the plan proposed by the circular of July 29 would be doubtless effective and valuable in many countries — for example, Mexico, China, Japan, Brazil, and other South American nations — where the consulates are less numerous and less fully equipped, and where the traditions of diplomatic caste and usage are less rigidly established, it is an open question whether such a system would be effective in a country like Germany, where the line between diplo- matic intercourse and everything relating to trade is sharply and relentlessly drawn. Some years ago, the United States Government sought to bridge this chasm by accrediting to several European governments officers with the dual character of ministers resident and consuls-general. The plan failed, for the reason that such officials were not recognized as diplomatic, but simply as consular officers. It was then declared impracticable to " mix diplomacy and commercialism," even in the secondary capitals of Europe, and the same would, in my opinion, happen again if embassies like those at Berlin, Vienna, and St. Petersburg were to be invested with the duties outlined in the pending proposition. Leading European governments evade this dilemma by accrediting to their embassies so-called " commercial attaches," who make long academic reports on abstruse statistical and industrial topics, but who, if the complaints of their own countrymen are to be believed, manifest only a languid and condescending interest in everyday com- mercial affairs, and render little or no practical service to real trade. The question is, therefore, at what points such supplementary assistance is needed in the service of the United States? Speaking only for Germany, I venture to believe that the interests of American export trade are already well and efficiently represented by the consular service as at present constituted. For example, there are published in the last monthly number (285, for June, 1904) of Con- PROMOTION OF TRADE INTERESTS. 57 sular Reports 97 reports on commercial, industrial, scientific, and economic subjects from consular officers in Germany. These reports are recognized here, as elsewhere, as being generally, in a high degree, prompt, clear, practical, and useful to manufacturers, exporters, and to the general public. They are copiously translated and repub- lished in this country, and I have been frequently told by Germans of high intelligence that they watch the United States consular reports for original and valuable information about their own country which they can not obtain elsewhere. It is respectfully submitted that if the merchants and manufacturers of the United States would utilize and work up the information, the suggestions, and practical assistance now offered to them by the consular corps in Germany this field of export trade would be fully and effectively covered. In the few instances where consular officers here need statistics and other official information which can only be obtained through a dip- lomatic channel, our embassy in Berlin has always been most prompt, considerate, and obliging in giving the desired assistance, and in my opinion, speaking only for Germany, this is its proper and most effect- ive attitude and relation to the whole subject. To impose upon the embassy the additional duty of revising and annotating consular re- ports would, in my judgment, not only entail needless labor on the part of the working force in that office and cause delays in transmis- sion out of all proportion to the advantages which would be secured by such censorship, but would chill and restrict the spirit of initiative which is now one of the exceptional and most valuable attributes of our consular corps and which ought to be by all proper means encour- aged and maintained. There are certain subjects the treatment of which requires statistics and other materials difficult of access to con- sular officers without diplomatic status. Such topics should be as- signed by the Department directly to embassies and legations instead of to consulates, but in my opinion, no permanent advantage can re- sult from an attempt to combine or mingle the functions of the two classes of officials by further subordinating one service to the other. No traditions are more rigidly conservative than those which gov- ern diplomatic usage in a capital like Berlin, and there can be no doubt that the standing of an American ambassador, both in respect to his colleagues and the sovereign to whom he is accredited, would be compromised and impaired by the knowledge that he has been for- mally charged with the duty of making commercial propaganda for the United States. Frank H. Mason, Consul-General. Berlin, August orts under the present system find their way back to our districts and are reprinted m the local papers. Any breach of good faith on the part of a consul or seeming abuse of courtesies shown him in factories would result in a loss of standing from which he could not recover. It has seemed to me that were the Department supplied with an industrial map or chart of each country, showing by consular dis- tricts the branches of industry carried on in these districts from year to year, and have the reports of a given industry so collected by consuls themselve- as to show the state of that industry in the entire country, it would certainly prove more satisfactory than the present system. For example, a half dozen consular districts in Germany are prominent for the manufacture of cotton goods. If some one consul was assigned by the Department to investigate and report on the subject as a whole, it would certainly have more interest for the American cotton trade than to have the reports by piecemeal, as under the present system. For such report the consul designated should have authority to call on all his^colleagues who have the same industry represented in their districts. Mich designation by the De- partment would be a stimulus to a consul to prepare a full and com- plete report, and having the right to call on his colleagues for infor- mation, he could do this as he can not hope to do under the present system. Doubtless in some cases the ambassadors could and would secure at first hand statistics and other information required to make such report complete. The consuls-general at capitals would also aid in this. The assignments could be made of the tobacco industry, chemical industry, textile industry, technical schools, leather trade. Portland cement industry, electrical railway building, oil business, etc. This ought to secure for public reference at lea>t one well- considered report from each consul per year, and need not seriously interfere with the present brief reports made from time to time. It would be exceedingly difficult for any one consul to make a reliable and complete report of the important tobacco industry in Germany without the assistance of three or four of his colleagues who are in tobacco districts. He can not call on the Leipzig or Dres- den or Nuremberg boards of trade for their reports, but the consuls of those districts have these reports, and were a consul designated to write up the industry, it would be a simple matter to have his col- leagues send him their last report- for examination and return in a PROMOTION OF TRADE INTERESTS. 73 few days. Such request could give no offense to the colleague be- cause the topic assigned to him for report would make such recip- rocal favors necessary and proper. To summarize briefly, I think it doubtful whether to so widen the functions of the diplomatic service in Germany as to make it in part a news-collecting or statistical bureau might not only weaken that branch of the Government in its purely diplomatic character, but, on the other hand, that a system of cooperation on the part of the consular service might be inaugurated under the direction of the Department that would give to a consul designated by the Depart- ment the right to ask for information from his colleagues in the preparation of a report on a particular subject; also that such re- ports so collated by a consul at his post from information obtained from all sources open to him, including information from his col- leagues having the same branch of industry in their districts, would be more satisfactory to the American reader and to the consul him- self, and would prove a stimulus to him and a test of his fitness. In the assignment of topics selections should be made from those having the particular industry in their respective districts, and such system of rotation followed as would be fair to each. H. W. Harris, Consul. Mannheim, August 26, 1904. PLAUEX. The undersigned bee's to reply to the circular, " Promotion of trade interests," as follows: Assuming that the diplomatic service of our Government abroad will be sufficiently equipped to assume the very considerable burden of labor that will unquestionably fall upon it through the contem- plated scheme of trade investigations and trade reports, I would hail the proposed innovation as a very great step in advance of present conditions. A number of serious defects now hampering the efficiency of our consular service would be easily removed by the inauguration of this new plan. I. Some definite system regarding trade reports by consular offi- cers, now left altogether to chance or the whim of the particular writer, should be established by a central head of the diplomatic serv- ice in the particular country to which such consuls have been accred- ited. Each consul could be then confined to such subjects as legiti- mately arise within his jurisdiction. Failure to report upon matters worthy of note could be discovered and remedied, and the matter col- lated could undergo a preliminary sifting, instead of, as now, being thrown upon the Department as an undigested and unclassified mass of manuscript, to be either published or rejected. II. Much of the important information now sought by consuls can only be had from the books and statistics of government officials of the country to which they are accredited. These officials are, in the main, unwilling to disclose this information to a commercial repre- sentative of a foreign government, for fear that the same might be used commercially to the detriment of their own country. No such 74 PKOMOTION OF TEADE INTERESTS. distrust is known to exist with reference to purely diplomatic repre- sentatives, and with a bureau organized as proposed, the consuls will be able to exchange the present unsatisfactory methods for one that is comparatively easy and always honorable. III. Every consul would welcome a system under which Jiis atten- tion would be specifically directed to particular subjects of investi- gation, aided by suggestions as to the scope and intent of the inquiry. His report would naturally gain in pointedness and brevity, while much useless effort now wasted would be avoided. The plan of the German Government, recently adopted, of attach- ing experts to its foreign consulates, whose duty it shall be to collect and report exhaustive data upon the trade conditions of the respec- tive countries, and thus serve as guides for the German exporters, shows the value attached by this country to a thorough and system- atic study of trade opportunities in foreign lands. There would seem to be at least equal, if not greater, reason why the American consular service should be rendered similarly efficacious, and ,1 sincerely believe that the suggestion now made tends in the right direction. Huteo Mtjench, Consul. Platjen, September 2. 190Jf. STETTTX. In reply to circular. " Promotion of trade interests," I have to say that this consulate experiences no trouble whatever in securing official information from first hands. Official, commercial, and industrial conditions are different in every consular district; no two are alike. It borders on an impossibility for any one person, particularly a for- eigner, to possess sufficient knowledge of the industrial and commer- cial conditions of the various consular districts to enable him to correct, revise, add to. or " pass " on consular reports, as suggested in the Department of State circular *dated July 29, 1901. A com- mercial or industrial attache, working on his own lines and calling on the consuls for assistance, and vice versa, would cause no friction. Misstatements and errors in consular reports occur when the consular officer goes outside of his district and the country to which he is accredited for material to report on. In such cases his whole infor- mation is based on reproduced news matter, which, quite frequently, undergoes a series of changes. John E. Kehl, Consul. Stettin, September 2. 1904. STUTTGART. Replying to Department's circular, " Promotion of trade interests," I beg to sa}' : That of late years there has been a gradual increasing tendency in official circles in Germany, at least, to refuse to the consuls informa- tion upon subjects important to our commercial interests. Whether this is owing to the growing spirit of rivalry or apprehension of American commercial supremacy, or whether it is a new policy PROMOTION OF TRADE INTERESTS. 75 inaugurated for certain purposes, which applies to the consuls of all nations, I am unable to say: but the fact remains that it is so. So far as my personal experience goes, I have been able to get about all the official information I have applied for, but I have been here seven years and have established between the various depart- ments of the Government and myself most excellent relations, and in some instances warm personal friendships. This may be due more to the amiability and high character of those in the Government service here than to any merit on my part, but it has often occurred to me that, if the consuls selected for posts at the capitals of the various kingdoms in Germany had the honorary title of " secretary of legation," it would give them a standing and place them upon a footing of considerably more usefulness to our Govern- ment in various ways than that which they uoav enjoy. As these various kingdoms have always had diplomatic representa- tives accredited to and residing at the respective courts, it would be considered by these governments a very proper and complimentary thing to do and the change would be a welcome one to them, pro- vided, of course, that representatives so sent were of the character and attainments commensurate with the duties of such position. There is no sort of question a bout- this situation. Whenever a con- sul is located at a post where there are diplomatic representatives of other countries, even where these diplomatic representatives perform consular duties, the consul is at a distinct disadvantage, not only in obtaining information, but in other respects also, for he is not of the highest grade of those present, and his government, more than he, is the loser. It has always seemed a very simple proposition to me that our country, with its great and manifold interests, should be repre- sented at every post important enough to have a representative by an official equal to the highest of those representing other countries. These posts of which I now speak, if made a part of our diplomatic service and stepping stones to ministerial positions, such as the con- sulate-general at Budapest and one or two other like posts are in the Russian and English services, would be of considerable advantage to our country both in increasing the general efficiency of the occupant thereof and in affording a good training ground for duties in future diplomatic positions. It would also relieve the stagnation or want of movement in the diplomatic corps and provide a wider and more diversified experience for those in that service. I am aw r are that it is not considered expedient by our Government to create at these posts ministerial positions, but if each of them were consulates-general, with the honorary title of secretary of legation, possibly nearly the same results could be obtained as though the posi- tions were ministerial. As the Department is aware, our Government is the only Govern- ment of consequence which has no diplomatic representative accred- ited at these courts in Germany. It may not seem important to the Department from a diplomatic point of view that this is the case, but that it is a disadvantage in a commercial way I have no doubt. If this simple change w^ere made, the " lack of diplomatic status " of the consuls at these posts would be obviated. The many and varied duties of a consul at an important post which fill up his entire day prevent him, to some extent, from giving to the broad view T of the commerce of the entire country in which he mav be 76 PROMOTION OF TRADE INTERESTS. situated that investigation and study which he would otherwise be glad to employ. It should always be remembered, when considering the efficiency and the duties of our consular corps, that it has a vast amount of detail work daily to perform which the consuls of no other country have. I refer to the examination and certification of in- voices. For this and other reasons I have long been of the belief that a system of commercial attaches in the chief countries of Europe, at least, would be practical and advantageous. Such an officer would have no other duties to divert his attention or employ his time, and he certainly would become, if fairly able and industrious, an eminent expert upon all phases of the commerce of the country to which he would be sent, I believe that we need, such men, and that their work would be productive of practical results, if made supplementary to the reports of the consuls. As to whether our ministers or ambassadors would or could be of practical assistance to the consular corps in their reports, this would, of course, depend largely upon a variety of circumstances. If the incumbents were men of commercial instinct and training, and had sufficient time at their disposal to give serious thought to and investi- gation of the multifarious questions of commerce and finance, un- doubtedly they would become able adjuncts to the consular corps in this respect. Of course, the reports of a proper consular officer need little, if any, reviewing, and the judgment of a good consul upon commercial matters would be better than that of a minister whose time and attention were too much occupied with his other functions or whose instinct and training were not such as to especially fit him for this kind of service. It seems to me that the system already established of having the commercial reports reviewed by an able official in Washington who has abundant experience in consular work operates very well, and that any report which would pass him for publication would be most unlikely to embarrass a diplomatic officer at his post. If this view is correct, the most that could be expected of diplomatic officials in this avenue of effort would be such independent work as they might be able to perform, which, of course, in some instances would be considerable; but the giving them any power of correction or review of the reports of the consuls does not now impress me as practical, and besides, it would, in my opinion, have a bad effect upon the consuls and rob them of that esprit de corps which now exists. In brief, therefore, it seems practical to me to establish in the chief countries in Europe commercial attaches to supplement the work of the consular reports ; to give the honorary title of secretary of lega- tion to the consuls at the respective important capitals in Germany in order to give them the b4 diplomatic status " necessary to have access to all information important to our commercial interests — for our diplomatic representatives are not accredited to these courts — and to continue the system now in vogue of the review of the consular reports in Washington, leaving to the diplomatic officers such oppor- tunities for giving commercial information as may arise. While upon this subject of increasing the efficiency of the work of the consular corps. I venture to suggest a line of action which has long occurred to me to be most practical and, in fact, necessar}^, and PROMOTION OF TRADE INTERESTS. 77 there need be no legislation to bring it into being, at least in the be- ginning. Make all appointments only upon open and competitive examina- tions to the lowest grade of consulships, and make all promotions, when vacancies occur, for efficiency of service rendered. By this means, a uniformly good class of officials would be gradually secured, and an entirely different feeling would take place among those in this branch of the foreign service than that which now exists. It may be taken as an axiom in any effort in life engaged in by a body of men that, if there be no proper esprit de corps, the best results will not be attained, and there can be no proper esprit de corps in this service as long as a consul feels that new men without any training or experience in the work are to be appointed to places above him and that, no matter what his work may be, promotion is uncertain; in other words, that his success, unlike that in all other avenues of activity, does not depend upon himself. Eliminate these defects, and, although the salaries may be inade- quate and the tenure of office uncertain, obstacles surely serious enough to encounter without other burdens, the consul will feel that a serious practical interest has been manifested toAvard the consular service. An order embracing the foregoing and containing, in addition, a clause to the effect that no consular officer should be removed for political reasons, but that all removals should hereafter be for cause, upon charges filed, to which the one charged would have sufficient opportunity to reply, would establish in great measure that reform which Congress has so long debated without results. It may also be presumed that, after a fair trial and a sufficient length of time had elapsed to prove the benefits of such action, legislation could be pro- cured that would fully complete and round out the organization of the consular corps on a practical and businesslike basis. Edward H. Ozmux, Consul. Stuttgart, August 31, 1904- WEIMAR. I have the honor to submit herewith my views on the subject of pro- motion of trade interests called for in Department's circular instruc- tion dated August 4, 1904, inclosing an instruction to diplomatic officers dated July 29, 1904. I am of opinion that action such as sug- gested in the instruction to diplomatic officers would render consular reports much more valuable, for the reason that diplomatic officers would only transmit instructions to and call for reports from such consuls as would be in a position to furnish the desired information. In this way much time would be saved. By the present system almost every consul is required to report, in answer to circular instructions, on any and all subjects, and many must, on account of their tardiness, cause the Department serious delay in issuing comprehensive reports. Again, the literary merit of the reports would be higher were they carefully edited at the legations and embassies previously to their being forwarded to the Dej:>artment. That this is a consummation I 8 PROMOTION OF TRADE INTERESTS. much to be desired is obvious to anyone who has read the consular dispatches sometimes received at the Department. It has been noticeable that the Department has heretofore issued circular instructions calling for reports to consuls without special regard to the fact that many concern subjects that it would be quite impossible for some of them to report on, owing to nonexistence of material in their respective districts. This seems unnecessary and occasions much work in the mere writing of dispatches stating that there is nothing to report and loss of time to the consul as well as to the clerical force of the Department. If it is determined that instructions shall not be sent to the diplo- matic officers for distribution and action, as outlined in the instruc- tion under consideration. I am strongly of opinion tha£ instructions calling for reports from consuls should be sent only to consuls-general, where there are such having jurisdiction, in order that they may exer- cise an intelligent selection and only forward them to such consuls as they know to be able to give the needed information. It is certainly the case that a consul, by virtue of his office, is not always able to procure from official sources such information as may be needed by him in the preparation of his reports, and it is most essential that inexperienced consuls should not be permitted to make requests to officials and others, only to be politely snubbed for their lack of tact. The Germans are rather disposed to consider any trade information furnished to our consuls as a weapon put into our hands to be used against them. The German press has called attention to written requests made by American consuls to chambers of commerce and other institutions for information of a more or less private nature, holding them up to ridicule and resenting their methods. Such blunders on the part of our consuls can only be deplored, and the Department would, by taking the proposed action, put an end to them. By all means have reports prepared through the medium of our diplomatic officers, and secure expedienc^r, uniformity, better literary style, and thereby avoid much unnecessary work. The diplomatic officers, by a process of careful selection and supervision, would surely obtain the above-mentioned results and save the Department much editing and labor. Thos. Ewixg Moore, Consul. Weimar, September IJf, 190 If. GREAT BRITAIN." Report from Ambassador Choate. A3IERICAN E 3 IB ASSY, London. Xovember 19, 1901<.. Sir: I have given careful consideration to the Department's cir- cular instruction of July 29 last, with reference to the proposed co- operation of the diplomatic and consular services in the collection of a For opinions of consuls in British colonies and dependencies, see countries under geographical divisions, as. for instance. Canada under America; India under Asia. etc. PROMOTION OF TRADE INTERESTS. 79 commercial and industrial data, with a view to the further promotion of our interests relating to trade in foreign countries. Before reply- ing to the questions therein asked, I would say that in so far as this country (the United Kingdom of Great Britain and Ireland) is con- cerned, I have been unable to ascertain that any of our consuls have ever been unsuccessful in obtaining commercial information which, had it been asked for by the embassy, would have been furnished by His Majesty's Government; nor is there any record upon our files, except in the single instance hereinafter referred to, of applications made by consuls for any such information or of its having been obtained through the embassy, which I need scarcely say would have at once complied with a request for commercial information received from one of our consuls. In reply to the first question contained in the circular, I have the honor to state that it would be practicable, if in the opinion of the Department desirable, for this embassy to transmit to our consuls in Great Britain and Ireland instructions from the Secretary of State for particular inquiries, with the addition of any suggestions which might occur to the ambassador as likely to facilitate the desired inquiry ; nor is there any reason why answers to such special inquiries could not be transmitted to the Department of State by the consuls through the embassy, such answers being read over, and if necessary revised by the latter, provided, of course, that the staff be increased sufficiently to enable the work involved by the addition thereby made to its duties to be properly dealt with. With reference to the second question in the circular, I have the honor to state that there is cooperation between the diplomatic and consular services of His Britannic Majesty; the commercial attaches to the British embassies which have such attaches being instructed " to give advice and assistance to British consuls within the area assigned to you (them) on all commercial matters," and to do like- wise " to British chambers of commerce, merchants, manufacturers, and shippers," and that they " will be the recognized intermediary to whom they (chambers of commerce, merchants, etc.) will have to turn for information and guidance in these matters." The British Government has appointed commercial attaches to the embassies at Paris (for France, Belgium, and Switzerland) ; Berlin (for Germany, Denmark, Holland, Sweden, and Norway) ; Vienna (for Austria-Hungary, Italy, and Greece) ; and Madrid (for Spain and Portugal). There are also commercial attaches to the embassy at Constanti- nople (for Bulgaria, European and Asiatic Turkey), and to the lega- tion at Pekin, the latter being also a consul. The commercial attache at Paris has the rank of secretary of embassy; and is placed on the official list of the members of that embassy after the military attache and ahead of the second secretary ; those at Berlin, Vienna, Madrid, and Constantinople, not having the rank of secretary of embassy, are placed on the list of those embassies after the second and before the third secretaries. The salary of British commercial attaches varies and, according to the foreign office list of this year, is as follows: Paris, £500; Berlin, Vienna, Constantinople, £800; Madrid, £725. 80 PROMOTION OF TRADE INTERESTS. Their duties are set forth in the following Memorandum of Instruc- tions, viz : Memorandum of instructions to Mr. Austin Lee on his appointment as commer- cial attache to Her Majesty's embassy at Paris, April 1, 1896. a 1. Your residence has been fixed at Paris, and in your capacity of commercial attache you will assist in the transaction of all the commercial business of Her Majesty's embassy, under the direction of Her Majesty's representative. You will, however, be required, upon instructions from this department, to be issued as occasion may arise, to visit any other country or place within the area assigned to you, as defined in the dispatch of the 1st April, 1896. by which you were informed of your appointment. 2. You should avail yourself of every possible source of information in regard to commercial questions, not only in the country in which j'ou reside, but also in the other countries within the area assigned to you. For this purpose you should take such commercial and industrial papers and periodicals published in those countries as may appear best calculated to supply you with accurate information, and you will furnish reports from time to time on any matters of interest you may find therein. You should submit a list of such papers, etc.. together with a statement of the expenses which will be incurred in their purchase, in order that you may re- ceive the necessary authority to charge them. 3. You will pay especial attention to the preparation of your annual report and of any special reports on matters of interest to British trade and industry. You should also be prepared to assist Her Majesty's consuls and vice-consuls within the area assigned to you with advice, when required, in the preparation of their commercial reports. 4. You will carefully watch all tariff questions in the countries assigned to you, and you should report without delay, and if necessary by telegraph, any changes in import or export duties, duties of all kinds on shipping, or in any dues, regulations, or formalities which affect the import or export trade. 5. You should follow the proceedings in the legislatures of the various coun- tries within your area as well as the meetings of chambers of commerce and other public bodies, and should furnish abstracts of anything of interest of a commercial or industrial character, together with such comments of your own as may seem called for. 6. You should be prepared to give advice and assistance to British consuls within the area assigned to you on all commercial matters, and also to British chambers of commerce, merchants, manufacturers, and shippers. You will be the recognized intermediary to whom they will have a right to turn for infor- mation and guidance in these matters. * You will therefore treat all such applicants with every consideration and courtesy, and will use your best efforts to meet their wishes so far as you properly can. The correspondence annexed to this memorandum will serve for your guid- ance as to the limits within which assistance can properly be given to British trade abroad. 6 You will understand that, although you are not expected and can not be asked to act as agent or commercial traveler for private firms, or to push their particular business, it may still lie in your power to render them substantial assistance in the pursuance of legitimate enterprise, and you should endeavor to do so as far as possible. 7. You should cultivate friendly relations in the countries within your area with the heads of those departments which are concerned with industry or com- merce, and also with the heads of any great manufacturing or commercial firms with whom you may be acquainted, and who may be able to furnish you with valuable information, or may desire to be placed in relations with British firms. 8. In addition to reporting on purely commercial questions you will also give your attention to and report, as occasion may arise, on the following subjects : (a) Mining and industrial concessions, and enterprises of British subjects « Similar instructions to the commercial attaches to Her Majesty's embassies at Vienna, Berlin, and Madrid. & Commercial No. 16 (1886), Parts I and II; circular, August 11, 1896. PROMOTION OF TRADE INTERESTS. 81 within the area assigned to you ; any difficulties connected therewith ; openings for extension or development, and possible new fields of enterprise. (&) Labor questions, strikes, rates of wages, workmen's unions, insurance or pension schemes, etc. (c) Sanitary questions, especially in regard to quarantine and precautions against diseases of animals. It is important that any actual or prospective change in laws or regulations affecting these questions should be reported with- out delay. (d) Trade-marks and patents. (e) Railways and preferential railway rates, roads, waterways, and tele- graphs, changes in trade routes by land or water. (f) Technical education. (g) Bounties and subsidies. (7/,) Improvements in industrial methods and machinery, (i) The state and prospects of agriculture, including improvements in culti- vation. 9. You will pay especial attention to the settlement of all claims by British subjects as to customs fines or wrong* charges and classifications for customs duties, and you will take all proper means to assist in such cases. It will be desirable that on the 1st of March in each year you should furnish a list of all such cases which may have come to your knowledge and which may not have been settled, stating your views on the merits of each case, and giving the reasons why a settlement has not been arrived at. 10. You will be careful not to lose sight of commercial questions which affect India and the colonies. You will furnish reports upon such matters, and should be prepared to give information to colonial governments on matters of commercial interest, subject, where necessary, to instructions from this office. 11. All communications with this department should be made through Her Majesty's representative, and all reports which you may consider to be of a con- fidential character and not suitable for publication should be clearly marked 44 Confidential " at the top. The British Government has also appointed for three years, from January 1, 1903, commercial agents in the United States (Chicago), Russia (Moscow), Switzerland (Zurich), and Central America (Guatemala) ; also (for an experimental period of two years) at Vladivostok. The business of these agents is to watch and report upon the com- merce, industries, and products of special districts, and to answer in- quiries upon commercial subjects. You ask me whether, in my opinion, a commercial attache to this embassy would be useful for the United States, and in reply, I would say that I do' not see how, for the reasons previously stated, such an official could be of any assistance to our consuls in obtaining material for their reports, and I fail to perceive how anyone in that position could be of value otherwise to the commercial interests of our coun- try, unless he should have had long experience as a man of business and be possessed of intimate and general knowledge of mercantile affairs. Such men, unless they had failed in business at home or were broken down in health, could only be obtained at a salary much higher, I should think, than that paid by the United States to any consul-general or secretary of embassy, and would, therefore, be prac- tically out of the question. I have endeavored to ascertain what view is taken at the foreign office of the results obtained from the appointment of commercial at- taches to the British embassies previously alluded to, but the opinions obtainable do not seem to be unanimous on the subject. There ap- pears, however, to be rather an impression that the commercial work is probably better done at those embassies where there are commercial attaches than at those at which the duties in question are distributed H. Doc. 245, 58-3 6 82 PROMOTION OF TRADE INTERESTS. among the ordinary staff of the embassy. The idea seems also to pre- vail that, as more attention is paid to official status in continental countries than in England, an officer with diplomatic rank is some- times in those countries in a better position to obtain valuable infor- mation from official sources than a consul. On the other hand, there are those who think that the arrangement diminishes the interest taken by the younger members of the staff of the embassy or legation in commercial questions, and consequently renders them less qualified to deal with such subjects later on in their career, when they may perhaps find themselves concerned in impor- tant commercial negotiations. I append hereto the following extract from the instructions issued to His Majest}f's diplomatic representatives,** from which you see — (1) That they are directed to " make the commercial interests of Great Britain an object of their constant attention; " (2) That secretaries of embassies and legations are directed to visit the great maritime towns and ports in the countries to which they are accredited, with a view to making themselves familiar with the course of business there, and to suggest measures by which " the trade of British subjects might obtain facilities or be relieved from burdens and obstructions." (3) That, as far back as 1872, British diplomatic representatives were called upon " to report on the general question of British trade with the country to which they are accredited, and to suggest means for its further development," which secretaries of embassies and lega- tions do regularly; and that the secretary of embassy or legation at Paris, the commercial attache, or a junior member of the mission in his absence, is required to prepare and send to the foreign office at least two reports every year — one commercial, on the industry, trade, and general statistics of the county in which he resides, and the other financial, on its budget and finances generally — besides additional reports on subjects of general and commercial interest, as occasion may require. With regard to question No. 3, I would say that it is somewhat difficult to form an opinion as to the additional assistance which would be required by an ambassador here in order to carry into effect the programme suggested in question 1, as it would depend very much upon the quantity of consular reports received for inspection and revision, and upon the frequency wherewith they would arrive ; but I should say that one additional secretary of embassy would be indis- pensable, "but whether called " secretary " or "commercial attache," he should be a man qualified by commercial experience to deal with the important business so to be intrusted to him. It would, furthermore, be necessary for the offices of the embassy to be removed to more com- modious quarters, as there is no room available in the apartment in which the business is now and has been for the last twenty years transacted for another secretary, or for dealing with the consular reports in the manner suggested in your circular. Having answered thus categorically, as nearly as I might, the spe- cific questions contained in your circular, I proceed, as invited thereby, with some suggestions that have occurred to me during my considera- tion of the subject, which may possibly aid you in dealing with the a Commercial. No. 16 (1886), part 1. Appendix A. Page 91. PROMOTION OF TRADE INTERESTS. 83 subject you have in hand, the " coordination and improvement of existing facilities for the collection of commercial intelligence." You will of course understand that, while you are considering the matter generally with reference to the diplomatic and consular service throughout the world, I am necessarily looking at it as regards Great Britain alone and the condition of things now existing here. As I have already said, there has never been the slightest diffi- culty here in the way of the collection by the consuls of commercial intelligence in the fullest manner possible. During my tenure of office, I have never been called on by the consul-general and only once by any consul for aid in obtaining such intelligence, and in that particular instance I was obliged to decline the request for aid be- cause the object was to obtain information in the form of advance sheets of an official paper as yet unpublished, which I thought I had no right to ask, except for special reasons and under specific instructions from your Department. The commercial department of the foreign office is at all times open and accessible to our consuls, whose questions are promptly answered, and so it is with all other public offices in the realm of which information is asked which can properly be given. In this respect, as I understand, this Government and its official representative differ radically from some continental countries, where official inquires from foreign consulates are ignored and are required to be repeated with diplomatic sanction. In this condition of things I can not help thinking that, in this jurisdiction at least, it would be a mistake to make the changes suggested in your circular, however wise or useful they might be in other jurisdictions, and for the following reasons: First. It is wholly unnecessary and a multiplication of agencies for accomplishing an object which is already adequately secured by existing agencies is of course superfluous. Second. It would j)retty certainly lead to clashing or confusion between the embassy and the consulates ; or Third. It would simply set them at work to do twice over what is already adequately done by one of them. The information, the statistics, and the reports would be reduplicated, without much gain. It would be employing two men to do one man's work, which always results in its not being well done by either. Fourth. The collection of commercial intelligence, in the general, and as a matter of regular routine, is wholly outside of diplomatic functions, and will be more properly and successfully done by the consuls whose official duties bring them into close and constant contact with the trade and commerce of the country. The aid of the embassy may be invoked by the consuls or ordered by the Depart- ment whenever special occasion may call for it. Fifth. In the course of my official experience under special instruc- tions from the Department, I have, in several instances, been able to assist in matters pertaining to commerce. In the matter of " London dock charges," I was instructed to make an investigation and report upon this subject, which was a complicated one, in aid of proposed legislation by Congress. When the chancellor of the exchequer pro- posed in his budget a new tax upon tobacco, retroactive in its Char- acter, which would have very seriously affected American interests involved, I was instructed to intervene with the British Government 84 PROMOTION OF TRADE INTERESTS. and make representations as to the hardships which were threatened to our trade. So also, when the government of Burmah excluded the Standard Oil Company from doing business in that state, and when the Federated Malay States enacted a tariff on tin ore, to the prejudice of American interests, I was instructed to examine and re- port on the matter and make proper representations to the foreign office. In all such instances, the service of the embassy in the matter intrusted to it might well be expected to be more efficient than that of the consuls could be, and in each there was some diplomatic feature involved. Many similar cases might naturally arise which should properly be committed to the embassy. And there are many subjects of a large and general nature bearing directly or indirectly on our commercial interests in which the services of the embassy might, from time to time, be advantageously invoked under instructions from the Department. The experience of Great Britain in the matter has some bearing upon the question which you have under consideration, but is not very pertinent or conclusive in the way of enabling you to reach its determination. Our consular service was long ago thoroughly systematized in the matter of collecting commercial intelligence-rod placed upon a most satisfactory footing in that regard, and has often evoked the admira- tion of other nations who were less fortunate in their consular methods. It has not thus been found necessary with us to divide the collection of commercial information or the routine attention to com- mercial interests, at any rate in this jurisdiction, between the embassy and the consulates. In the British service, on the contrary, it has long been the rule that the first secretary of every embassy and lega- tion should make annual or semiannual reports on the commerce of the country in which he was residing. This necessarily absorbed his attention and led to his being relieved of other duties in the embassy, except when he was in charge, and I can not but think that first secre- taries in our embassies would be better and more usefully employed in the functions in which they are at present engaged. Some years ago, during Lord Roseberry's tenure of the foreign office, the London merchants somehow got the idea, which seems to have been wholly without foundation, that the interests of British trade in foreign countries were not being sufficiently attended to, and great pressure was brought to bear upon the foreign office in this mat- ter, and an elaborate correspondence was had. Various communi- cations were addressed to the foreign office by the London Chamber of Commerce and others interested in foreign commerce, to which replies were sent. A circular letter was addressed by the foreign office to chambers of commerce and other trade associations, asking for information and practical suggestions "as to what greater meas- ure of support they think might be afforded by British representa- tives abroad to British trade," and many replies were received. In the previous year Earl Granville, then minister of foreign affairs, in dispatches to various embassies and legations, called for reports as to the assistance rendered by the Government to which they were* accredited to the trade and interests of their merchants abroad, and many valuable replies were received. On the 9th of April, 1886, Mr. James Bryce, then under secretary PROMOTION OF TRADE INTERESTS. 85 of state for foreign affairs, addressed a circular to many of His Majesty's consuls abroad, asking for similar reports on the same sub- ject, to which many able replies were received from many consuls in various parts of the world, in which the whole matter was elaborately discussed. With all this information and these suggestions before him, Mr. Bryce, on the 17th of July, 1886, prepared a most able and elaborate memorandum or report covering the whole subject-matter.* I append copies of all this correspondence and of this memorandum, as submitted to Parliament in " Commercial No. 16 (1886), Part I," and " Commercial No. 16 (1886), Part II," and I especially commend to your notice Mr. Bryce's remarks on the proposition to appoint a commercial attache to eA^ery foreign capital where Her Majesty is represented in the three paragraphs contained on pages 12 and 13 of Part II.« o Note by Department of State. — The paragraphs referred to are the fol- lowing : " Still more weight has been laid upon the suggestion that there should be added to the diplomatic service a new class of persons specially trained for and charged with the duty of promoting British commercial interests. It was even proposed in the House of (Commons last session that a commercial attache should be appointed at every foreign capital where Her Majesty is represented. Not to speak of the expense which this would involve, it may be doubted whether a commercial attache would at most capitals find enough work to occupy him, or whether, by any exertions he might put forth, he could render much further help to British manufacturers and merchants than they now obtain through the press and private channels of information. His presence would be an excuse for the neglect of commercial affairs by the rest of the embassy ; _ there would be little promotion for him ; nor would it be easy to secure, except by a large salary, capable men for a post so much out of the line of the regular service. Only a person of large commercial knowledge, judgment, and experience would be worth having, and such a person would be almost certain to prefer a private commercial career to the prospect which this special branch of diplomacy would hold out. If such a class of officials are needed, it is not necessarily in- capitals that they would be most service- able ; but the view that they are generally needed seems, anyhow, to rest on a wholly exaggerated estimate of the services which diplomatic representatives can render to private traders. " More may be hoped from stimulating the interest of our present diplomatic and consular officers in commercial affairs and from giving them both a stronger motive and better facilities for activity in this department of their duties. There will always be among our diplomatists some men with a special turn for mastering commercial subjects. Such men ought to be encouraged to prosecute inquiries into these subjects and be selected, by preference, for posts where proficiency in them was likely to be valuable. As regards the consular branch, even if it be not turned into a regular service similar to the diplomatic, a question too large to be discussed here, something more than has yet been attempted might be done to develop its aptitudes in this direction. Special regard might be had in the appointment of consuls to their capacity for com mercial work. Opportunities might be given to consuls of obtaining the sort of knowledge which would help them. as. for instance, by extending their acquaintance with mercantile law and the methods of commerce, or by visiting some of the chief seats of British manufacturing industry. Promotion to a higher post might be influenced by the tact and zeal a consul had shown in helping English trade and by the mastery of commercial questions displayed in his reports. He should be encouraged to communicate more frequently with the foreign office on these topics, and, similarly, the commercial depart- ment of the office might become to a larger extent than at present the means of conveying to our representatives the wishes and inquiries of the mercantile community at home. It is not easy to specify the precise forms which this kind of intercommunication would take, nor would it be prudent to anticipate large new results from it. All I suggest is that more might be done than is now done to focus, by means of the foreign office, the ideas and desires of 86 PEOMOTION OF TRADE INTERESTS. In a subsequent letter addressed by Mr. Bryce to chambers of com- merce and commercial associations of the United Kingdom, be sum- marized the suggestions which had been received and the results of the consideration of them by the foreign office, a copy of which will be found in Part II. In this letter the particular subject of commer- cial attaches is thus disposed of : , 14. That commercial attaches he appointed to embassies and legations. — This suggestion was fully discussed in a debate in the House of Commons last session. Its adoption would involve considerable expense, and until more powerful reasons can be deduced on behalf of such a proposal, the secretary of state can not pronounce in its favor. Afterwards, in 1897, under Lord Salisbury's government, there was a good deal more correspondence on the general subject, which ap- pears in Commercial, No. 5 (1897), herewith inclosed, and on page 20 there is inserted the reply of the under secretary of state for foreign affairs in the House of Commons to a question asked in the House, showing the appointment of commercial attaches for Germany and for Spain and Portugal, and the reorganization of tlie-commercial attacheships at Paris and in Russia and western Asia, and on page 28, under date of March 20, 1897, the fact is stated of- the revival of the post of commercial attache at Constantinople and the reasons therefor. After a perusal and careful consideration of all the information and matter herewith submitted, I am unable to see that either the ap- pointment of a commercial attache in this embassy or the adoption here of any other of the changes suggested in your circular of July 29 would tend to advance the interests of American trade in Great Britain. The transmission through the embassy to consular officers in this country of instructions to the Department of State for particu- those who in England are employed in foreign trade and to radiate, so to speak, these ideas from home over all those places wherein help is sought or whence information is required. " It does not, however, follow that the notion which lies at the bottom of the proposal to appoint commercial attaches is &n unfruitful one. We, in England, have much to learn from other countries, not only as respects the methods by which they conduct their industries and their commerce, but also as regards their legislation, the condition of the masses of their people, the various means by which they deal with those social and educational problems which confront all great modern states. Any one who has been accustomed to travel on the continent of Europe or in North America is daily struck by the number of points in which the experience of other countries throws light on our difficulties — sometimes in the way of suggestion, sometimes in that of warning — and is led to desire that a more constant and systematic means existed than we now pos- sess of obtaining and rendering available, for the benefit of Britain and her colonies, the results of that experience. Of late years much has been done to procure such data, both by sending out occasional commissioners to inquire on specific subjects, and by requiring special reports from Her Majesty's representa- tives in foreign countries. We have a commercial attache 1 at Paris, whose re- ports on trade and industrial questions are excellent, and who should be fre- quently instructed to report on these questions as they arise in different parts of France. But our diplomatic representatives (even supposing that they could quit their posts to travel when required) are not always qualified by their knowledge, by their literary skill, or by the possession of a keenly ob- servant mind, to obtain the right sort of information, or to present it in ef- fective form. There would be ample occupation for two or three men of exceptional aptitude in going from place to place to report upon subjects be- longing to what may be called the realm of economic and social progress. One might be kept busy in the United States, where the diversity of laws and the continual development of new branches of industry furnishes an almost bound- PROMOTION OF TRADE INTERESTS. 87 lar inquiries and of the answers to such instructions would appear to me to be a work of supererogation in this particular jurisdiction. In respect to particular inquiries which ma}^ from time to time be sent by the Department of State to consular officers in Great Britain, the sources of our information in London are equally open to the con- sular officers, who are presumably much better informed than we are on trade questions, and the embassy would not be likely to have any special knowledge which would facilitate the inquiry or help to make it more comprehensive or more exhaustive. I do not think that any consular officers of the United States now in Great Britain, or who are likely to be appointed to serve here, would embody in any reports to the State Department matter likely to give offense or to cause the ambassador embarrassment in his diplo- matic capacity, and no such instance has come to my knowledge in the past. If such a thing were possible in the future, the right and power of revision, amendment, or suppression reserved to the Depart- ment of State would be ample protection. I think also that such supervision and power of revision, correc- tion, and criticising, if placed in the hands of the embassy, would inevitably lead to friction and greatly hamper the independence and initiative of the consular officers, and lead them to be much less thorough in their work. Their appreciation of the importance of the duties intrusted to them consists largely in their constant sense of direct responsibility to your Department, without any dependence upon or intervention of the embassy; and as to errors of fact or judg- ment in their reports, it seems to me that these, if they occur, can be dealt with to better advantage, and with greater regard to uni- formity, by that bureau of the State Department which has charge of commercial matters than by the ambassador. less field for instructive inquiry : two more in the continent of Europe, with most of whose states we have frequent negotiations on commercial questions in Avhich a knowledge of their commercial condition becomes important. Although commerce and manufactures would afford the most frequent occasions for re- ports, one might suggest a great number of other topics to which the inquiries of such roving commissioners might be from time to time directed." On page 14, Mr. Bryce thus summarizes his conclusions : " I may conclude by recapitulating briefly the conclusions to which the com- munications received by the foreign office and the foregoing examination of their contents seem to point. " The foreign office may seek to continue to be itself useful, and to utilize the services of those who act under its instructions abroad in the following direc- tions : " Increased activity by diplomatists and consuls in affording information and help to Englishmen seeking to do business abroad. "Action (firm but cautious) by diplomatists in remote countries in counter- acting the pressure used by the representatives of other states to push the mer- cantile interests of their countrymen. " More precise definition of respective duties of diplomatists and consuls in procuring information. " Prompter transmission of current commercial news from abroad. " More regular transmission of annual reports. " Better arrangement and prompter publication of reports. " Publication in a special journal of current commercial foreign news. " Sending home of samples of goods and foreign products for exhibition in commercial museums (when established) or otherwise. - " Greater encouragement to members of diplomatic and consular services to master commercial questions, and better facilities therefor. " Appointment of two or three qualified persons to be sent abroad to report upon commercial and industrial questions of immediate interest." 5b PEOMOTION OF TEADE INTEEESTS. It follows, therefore, that in my opinion better results will be obtained in the growing work of equipping our manufacturers and exporters for effective competition in the world's commerce by keep- ing the two services distinct, as they have heretofore been, and hold- ing each to a strict accountability for the discharge of its own proper functions and duties. The second consideration set forth in the circular of July 29, viz r the limitations of the consular service in its lack of diplomatic status in obtaining official information at first hand, certainly has no ap- plication to consular officers within this jurisdiction. They have always obtained all the official information they required without our intervention. Of course it is possible that such a chance might happen as that official information which they desire should be refused to them by some public office by reason of their want of diplomatic capacity. But as it never has happened hitherto, will it not be quite safe to rely upon the known readiness of the ambassador to assist in such a rare case when called upon rather than to make a radical change in a system which has heretofore worked well ? But I am far from thinking that the embassies and legations, and this embassy in particular, can not, on proper occasions, supplement the work of the consular service in promoting American trade in its ever-growing competition with the manufacturers and merchants of other nations in the markets of the world. Past experience has shown that the embassy can be made useful in examining and reporting upon special subjects of national and international interest, and many large questions involving our commercial interests will from time to time arise, in the investigation of which the embassy will always be ready to render its best service. Joseph H. Choate. Inclosures : a Parliamentary publications. — 1, Commercial No. 16 (1886), Part I; 2, Commercial No. 16 (1886), Part II; 3, Commer- cial No. 5 (1897). Supplementary. American Embassy, London, November 29, 1904. With reference to my dispatch, No. 1467, of the 19th instant, rela- tive to the promotion of trade interests, I have the honor to state that Sir Henry Austin Lee, commercial attache to the British embassy at Paris, has been recently given the rank of councilor of embassy, which confirms the suggestion contained in my report above mentioned — that as mere attaches without higher diplomatic standing these commercial attaches were not found so advantageous as had been expected. Joseph H. Choate. a Filed in Department of State. PROMOTION OF TRADE INTERESTS. 89 Opinions of Consul-General. LONDON. I have the honor to report upon circular " Promotion of trade in- terests " as follows, limiting my remarks to conditions in the United Kingdom of Great Britain and Ireland : First. The relations between the American embassy and the Ameri- can consulate-general here are now, and I am informed have been al- ways in the past, most cordial and friendly. Secondly. I know of no information of a public nature that would be of interest to trade or commerce that can not be had promptly by the consular service. All information with reference to shipping, trade, commerce, manufactures, etc., that is published is put on sale promptly, and I am quite of the opinion that any diplomatic officer who put himself in the attitude of seeking to get information in the shape of advance sheets, or advance reports, to give his own govern- ment or people ahead of the regular official publication would soon lose more in standing than he would gain. The consul comes in con- tact with the class of men who are interested in developing trade and commerce — the men who cause the wheels of industry to go round ; the embassy does not. The embassy does not have the opportunity to meet these men, and would not meet them unless specially sent for. On the other hand, the business men, practically representing all avenues or channels of trade and commerce, come to the consulates, and the consuls do not hesitate to inquire into business and business methods. In doing so they are in no danger of disturbing diplomatic relations between the governments. Possibly conditions are different here from those in other countries, but I can not imagine a condition arising here or in this jurisdiction where legitimate information was asked for about trade and com- merce that the consul in the district could not furnish ; and as for this consulate-general, situated at the capital of the United Kingdom, the various officials have been to me most courteous and obliging at all times, and as they have been to me, so I am informed, they have been to my predecessors. I shall take the liberty of enlarging upon the scope of your inquiry, being of the opinion that to understand the situation thoroughly con- ditions should be stated plainly. I feel somewhat alone in making this kind of report, having seen the unanimity with which the consuls report approval of the proposed new departure; and yet, so far. as I can find on inquiry, no one has had occasion to appeal to the embassy for information. I can see no good to come from it. In fact, I can only see a duplication of work — facts, figures, statistics, conditions of trade and commerce that must be ascertained, compiled, and pre- sented in American shape. To do this means work, if done well. For it to be done again by the embassy means more work, and unless done thoroughly and by competent men, it is worse than not being done at all. It divides the responsibility. I sent you recently one report of 143 pages of carefully compiled statistics pertaining to in- ternational trade and commerce. I can not see why an ambassador should be burdened with the task of going into this kind of work. No ambassador would do it ; and if the responsibility as to the accu- racy were turned over to the embassy, naturally the ambassador would be charged with and held to account for inaccuracies. 90 PROMOTION OF TRADE INTERESTS. Further, is the ambassador better equipped by reason of his posi- tion or is the embassy better fitted to deal with the many details that come within the duties of consuls? The ambassador has four secre- taries — most excellent and accomplished gentlemen socially and diplo- matically, but none of them with the practical experience or training in manufacturing, trade, or commerce which would qualify them to go into or work up the details of examining, correcting, or testing the accuracy of or approving or disapproving the many reports of the many consuls of this United Kingdom that are prepared and for- warded. With this statement of existing equipment, we come down to clerks at the embassy, and I am not prepared to believe or admit that they are as competent to supervise the reports of the various consuls as the consuls who make and prepare these reports and prepare them in a manner to be understood and meet the wants of the men engaged in developing and extending trade and commerce of the United States. Nearly all of the American consuls in the United Kingdom are edu- cated men, authors and writers on economic questions. They are mostly newspaper men, trained in gathering news — men who know news when they hear it and a new thing when they see it. These con- suls are men of high character and of good habits, I think, without ex- ception, and especially qualified and well fitted for the duties and work assigned them. I know they are better adapted and better equipped to render valuable service to our country in this class of detail work than is the embassy with its present excellent but limited force, because they come into personal contact or touch with the men of trade and commerce in their respective districts. The embassy does not come into touch with this class of people, and it is better for the diplomatic service that it does not. As it is, the embassy — the diplomatic service — is not held responsible for the many amwances that are disposed of by the consular service in the administration of the tariff and customs rules or the many regulations necessary to direct and systematize international trade. I might add that other nations, and I know this from their repre- sentatives, realize that the American consular service is the best of any nation. Of course it is not perfect ; it can be improved in many ways, and the present suggestion would aid by adding a considerable force to supervise at the embassy the work done by the consuls. But I add, without request, do not loAver the dignity of your diplomatic service by tangling it up with the burdens and jealousies of trade and tradesmen without at least some promise of compensating benefits. If I may be permitted to suggest, the place to supervise and edit the consular reports is Washington. The right man there, to call for data such as trade and industry in America need, and to present the information in an intelligent and comprehensive form — conditions abroad compared with conditions in America — will produce better results than a cursory supervision abroad. H. Clay Evans, Consul- General. Loxdox, November SO. 190 '4. PROMOTION OF TRADE INTERESTS. 91 Opinions of Consular Officers. BELFAST. In compliance with circular, "Promotion of trade interests," _ I have the honor to report that, in my judgment, it would greatly facil- itate the preparation of reports * if instructions were transmitted through the diplomatic officers, provided it were practicable for such officers to attend to the matter, and make notations indicating prob- able sources of information, such as statistics or other valuable data which it is sometimes difficult for consular officers to obtain. Of course this would only apply to special, comprehensive reports, as consular officers can generally obtain information for local reports after investigation in their own districts. As far as this office is con- cerned, there is at present no cooperation between the diplomatic and consular officers in making any reports, but it would seem that if such cooperation were sanctioned by the Department and established as a means of obtaining commercial information, it would be mutu- ally beneficial to both services. Edward Harvey, Vice and Deputy Consul. Belfast, September 22, 190 ] Jj.. BRADFORD. Replying to your circular, " Promotion of trade interests," I would say that, taking into consideration all nations, I have no very definite opinion as to the proposed plan of coordination and improvement of existing facilities for collection of commercial intelligence, but, so far as England is concerned, and especially the Bradford district, I can not see how the suggested improvements or changes would be of substantial benefit. The commercial conditions in England, as regards the introduction of American goods, it seems to me, are fairly well understood in the United States. At present all needed or useful information is usually obtainable by means of communication with the consuls in different parts of England. To get information asked for by American manufacturers or mer- chants I have quite generally found to be practicable — in fact, I feel that manufacturers, officials, and others have been very obliging in regard to it. It strikes me, so far as England is concerned, that to make con- sular officers more especially agents for extending the trade of the United States would hinder rather than help their efficiency, as I should fear it would lessen the regard the English people now have for them. I think if the Government of the United States is to extend or enlarge the scope of its efforts to further our trade in foreign coun- tries that, so far as this country is concerned, it would be better to have a commercial agent charged especially with the duty of collect- ing such information as would be of special value to American man- ufacturers and tradesmen. I have not attempted to answer every suggestion or inquiry in your circular for the reason that I have not 92 PROMOTION OF TRADE INTERESTS. the information or the ready means of getting it to do so intelligently, but have given simply the impressions that have come to my mind, and feel that others who are more competent will give } T ou the fuller information required. Erasttjs S. Day, Consul. Bradford, September 28, 190 i. BRISTOL. To the Department's circular, "Promotion of trade interests," I have the honor to reply as follows: The circular states that the extension of commerce has become one of the chief aims of world diplomacy, and that suggestions are desired which may tend to systematize and improve existing facilities for collecting commercial intelligence. Such intelligence naturally falls, broadly speaking, into one of two classes. One is analytical, statistical, general, deals with figures of imports, exports, consumption, etc. and draws deductions from completed official or other reports. It surveys large areas, treats of the trade of countries and ports as a whole, makes inferences from completed tables as to the movements of a particular industry — deals, in fact, with the past, even though that past comprise a period which ended the day before. This deductive branch of statistical science is devel- oped generally in the United States to a point of completeness and accuracy which has won commendation from most nations. The other bears that relation to the deductive branch which report- ing bears to editing. It deals with isolated facts as they are observed at the moment. It can not generalize. It does not have before it figures which justify the statement that a country has increased or decreased its exports of a particular commodity by such a percentage in a given time. It can not exhibit general tendencies or trace the ebb and flow of the streams of commerce. It obtains its knowledge at first hand, from observation of the workings of a par- ticular commercial enterprise. Its methods are the opposite of those followed in the first. It requires a different ability, a different order of man, a different life training. Instead of stating, after a study of statistics, that imports of wire nails from the United States fell off 5 per cent and that im- ports of German wire nails increased by 10 per cent during the previous year, it sees the alteration while it is going on. It inquires into the causes. It attempts to reach the shipper with information while the conditions remain unchanged. The demand for this kind of information has become so insistent that it has crystallized into a new conception of the consul and his duties. It is the third change within a hundred years. A century ago, he was regarded as- concerned with shipping and crews. Fifty years later, owing to the introduction of the invoice system, he was transformed, in the popular mind, into an advance picket of the cus- toms. Now he is regarded as the pioneer of trade, and his other duties, performed in the privacy of his office, attracting little pub- licity, appear to be almost forgotten b}^ the people. PROMOTION OF TRADE INTERESTS. 93 It is obvious that I can not have the wider experience which my colleagues in larger ports and greater world centers must have, but I receive a considerable number of letters which show me that an increasing number of our manufacturers are seeking intelligent direction in the search for a foreign market for their particular commodity. Some of these would-be shippers, one may read between the lines, are not manufacturers on so large a scale as will justify a costly foreign campaign, or it may be that the commodity which they manufacture does not admit of a profit which will justify elaborate exploitation in a new market. It may happen, also, that a manufac- turer can afford an organized attempt on his own part, but that he seeks preliminary information. This new demand for what is often somewhat loosely called " prac- tical information " has been recognized by the Department and re- sponded to by consuls. It may be thought advisable, however, while the subject generally is under discussion to consider whether some further special response to this rapidly developing popular demand might not advantageously be given. The suggestions of the circular are admirably conceived for effect- ing excellent results. If they shall be carried out, repetition and overlapping can be almost entirely eliminated. What is more im- portant, the consular corps must necessarily receive stimulus and encouragement from the forging of the proposed link with the diplo- matic branch of the service. The improvement, however, will proba- bly be most evident in connection with the collection of the scientific and analytical kind of commercial information. I venture to sug- gest one way of effecting an advance in supplying the other. The Department refers to the matter of commercial attaches. Such reports as I have seen of these attaches of various European gov- ernments, admirable as they are, have dealt almost entirely with statistics. Their work has been of great value in marking out the channels of commerce and in noting the rise and fall of the tides of trade. It is of a kind useful to a nation considering possible legis- lation, or to a scientific statistician. It may be of advantage, no doubt, to the individual exporter, but that is not its main design. It will be admitted, I think, that commercial attaches have not been appointed primarily for this purpose. I respectfully submit the suggestion that the United States might adopt the idea of the commercial attache, but considerably altered to suit the changed conditions. England has, for a long time, enjoyed a great export trade. The machinery for obtaining information from private agents and correspondents has long existed. The testi- mony of the great manufacturers and exporters given before a royal commission, some years ago, was substantially unanimous in assert- ing that practical, direct information about a particular industry was not expected through government channels. But such is not the view of our manufacturers in this period of transition into an export- ing nation ; and there is the more justice in their attitude when we remember the distance from markets. An Englishman could hardly ask from his Government information which he himself could gain in a journey of a few hours; but our exporters are thousands of miles from European buyers. It may be admitted, at once, that no government can do as much for the individual merchant as he can do for himself ; and there will 94 PROMOTION OF TRADE INTERESTS. i probably always be .in the future, as there have been in the past, a few who will ask too much of a system and of those who are endeavor- ing to carry it out. What can be done, however, and what can be done at the present moment with peculiar effectiveness, is to provide comprehensive, accurate, and minute surveys of special fields in par- ticular countries; surveys which concern themselves with statistics to just the same extent as would a broad-minded and able commer- cial traveler. It is this kind of man who might be, at this moment, it appears to me, utilized with high advantage. It would embarrass the inquiries of such a man to be attached to an embassy or to a consulate-general. Instead of being attached to a particular country, he would be accredited to a special branch of commerce. His concern is with the people, the traders, the manu- facturers of a nation, and not with its governmental departments. If it be argued that it would be difficult to discriminate as to what industries should receive such aid. I would answer that certain prin- ciples could be laid down which would act almost automatically, and would limit the number of agents required to a very small number. • The great industries already firmly established, having already their own channels of communication, their own representatives abroad, do not need this kind of aid. This consideration eliminates among others the leather business, which is in daily cable touch with its correspondence all over the world; the petroleum industry; the export trade in cotton, in cereals, and in provisions. On the other hand, our manufacturers — to specify a few industries — of agricultural implements, of vehicles, of improved types of gas and motor engines, of paints, oils, and varnishes, of hardware, of furniture, are earnestly seeking intelligent direction toward foreign markets. I venture to think that the onus of proving its need of such official aid should be laid on the industry itself. Half a dozen manufactur- ing interests, selected on account of the capital engaged, of the num- ber of men employed, and of the existence of an export trade, might be informed that the Department was prepared, if these industries established their need of such action, to procure for them a technical and minute account of the conditions under which their respective commodities are sold abroad, and an expert estimate of the possibili- ties of their establishing or increasing^their business in certain speci- fied countries. I venture to think that the information would be received with high appreciation, and that earnest effort would be made to profit by the offer. The commercial representative who would be sent abroad under such conditions would necessarily be an expert in the particular industry on which he is to report. He would visit successively the several countries to which he would be directed by the Department. His reports would have an essential and minute accuracy, which can characterize the work only of one possessing intimate and special knowledge of the subject in hand. They would have more than a momentary value — great as that might be. When he had surveyed all likely fields, his volume would be a guide book of the world for a particular industry, and would, for most countries, and in many respects, be a standard of reference for years to come. The above suggestions are respectfully submitted to the Depart- ment in frank response to the instructions received, and with the PROMOTION OF TRADE INTERESTS- 95 full understanding that controlling reasons, of which I can not be aware, may prevent favorable consideration of suggestions which are the result of some years of observation and experience. Lorin A. Lathrop, Consul. Bristol, October 18, 1904. CORK. I have the honor to acknowledge the receipt of circular " Promotion of trade interests." Having been asked to express my views on the subject, I beg to say that the idea appears to me to be a good one, pro- vided the diplomatic officers are willing to undertake the duties mentioned. As far as any information within my district is con- cerned, I have not had any difficulty in procuring anything desired, either for my reports to the Department or for replies to the many letters of inquiry received from the merchants and manufacturers in America. I have found the business men in my district most obliging and courteous when asked for information concerning their business. Daniel Swiney, Consul. Cork, August 22, 1904. EDINBURGH. Complying with the circular request of August 4, for an expres- sion of views on the plan set forth for promoting American trade interests abroad, I beg, respectfully, to say that if the diplomatic service can become a regular and active auxiliary in the work of advancing our trade interests, without risk of embarrassment in the exercise of its essential functions, highly beneficial results would, in my opinion, flow from the systematic participation of our embas- sies and legations on the lines marked out in efforts to furnish American manufacturers and exporters with trade intelligence. From my point of view, there seems little room for doubt that cooperation between the diplomatic and consular services, if directed only or mainly to inquiries relating to general commercial and industrial conditions or certain phases of such conditions and to the market for specified classes of goods in a country as a whole, and similar broad questions, would greatly enhance the value of the con- sular service as an instrument for the expansion of foreign trade. The apparent advantages of such a system may be concisely stated: 1. A preliminary investigation by a commercial attache, or other member of an embassy or legation, of the particular subject sub- mitted to the embassy or legation by the Department of State. The collection of official data and the formulation of inquiries based thereon, addressed to consular officers, would probably give these officers clear guidance to definite ends, enabling them to make com- prehensive, well-digested, and satisfactory reports. 2. The comparative quickness of communication within a country would make it practicable for a consular officer to obtain any sup- plementary or special instruction he might require as to the nature and scope of the report expected from his district, and for a diplo- 96 PROMOTION OF TRADE INTERESTS. matic representative to offer voluntary suggestions in re sufficient data or inadequate reports. 3. Full and accurate statistical information could be procured at the capital through the embassy or legation. 4. The annotations made by the diplomatic representative upon the group of reports from consular officers should contain important facts, opinions, and suggestions. It seems to me that, in coordinating the two services for the special object in view, it would be advisable to provide that all correspondence between embassies or legations and consuls and commercial agents should be conducted through consuls-general, under open cover, and reports sent to the diplomatic representatives through consuls-general, under open cover, thus (1) preventing friction and confusion, (2) keeping consuls-general in full touch with the commercial work of the consular officers under their respective jurisdictions, and (3) pre- serving the line of demarcation between the diplomatic and consular services. Within the limitations indicated, I think that there is a wide field for an extension of the usefullness of our embassies and legations in developing the possibilities of the consular service as an aid to American producers and exporters. Rufus Fleming, Consul. Edinburgh, September 1, 190 If. DUBLIN. In reply to the circular of * August 4, regarding the promotion of trade interests, I have the honor to report that I think it would be a mistake to have consular reports sent through our legations and em- bassies if they were to be subject to modification or change by the diplomatic officers. While I am sure that diplomatic officers would only make or suggest changes in the reports when they felt sure of their ground, I can not see how their opinions could possibly be en- titled to as much weight as the opinion of a consular officer, based, as the latter are, on his observation and experience in the district con- cerning which he is reporting. Where the information asked for can only be procured through the courtesy of the government, it seems to me that the reports should be made by the diplomatic officers. I think our present system would be improved by the appointment of commercial attaches, if they were given power to call on consular officers at any time for information desired, and if the reports were published without any indication as to their origin. Under our pres- ent system, a consul's usefulness in obtaining information is often very much restricted by his reputation for efficiency. I have often seen widely read commercial papers advocating the furnishing of inaccu- rate and misleading information to our consuls as a means of counter- acting their " objectionable inquisitiveness." And this inquisitive- ness is emphasized by the republication of the consul's reports in the local newspapers in the consular district. If the reports were anony- mous, they would escape notice in the consular districts, while the Department's imprimatur would insure their receiving attention at PROMOTION OF TRADE INTERESTS. 97 home. Of course, the present system is more satisfactory to the vanity of consuls, but I do not think it is necessary to consider that in attempting- reforms. A. Donn Piatt, Acting Consul. Dublin, August 29, 1904. DIXEEKMLINE. In my experience here as consul in seeking information for reports, special or otherwise, I have never had any difficulty in obtaining it from local official sources. I have, in a few rare instances, however, met with a point-blank refusal from private concerns to give any infor- mation whatever relative to their trade that would be of value to American competitors. In such instances, I have usually been obliged to procure the information wanted through indirect channels. It would probably be beyond the power of a diplomatic agent to aid a consul in obtaining information from private houses which would be refused to a consul on competitive grounds, except perhaps, to suggest to a consul lacking in resource how to obtain the information indirectly. There is no doubt, in my opinion, that cooperation of diplomatic representatives with consular officers would greatly increase the power and facilitate the means of the consular service to obtain official in- formation at first hands, especially in official centers of this country and in all continental and eastern countries. In any circumstance, it would strengthen the hand of a consul to have the embass} 7 or lega- tion nearest his post prepared and equipped to cooperate with him, when necessary, to procure information called for by the Department. If the answers of consular officers to instructions from the Depart- ment were to become subject to revision by diplomatic representatives, the practice, when successfully established, would, to my mind, prove a valuable help to consuls and greatly increase the efficiency of the service. Of course, in order that a consul should know what value was placed upon his efforts, he would require to be advised as to what suggestions, corrections, additions, or eliminations were made by the diplomatic agent, if any, and the final disposition of the matter by the Department of State. J. N. McCunx. Consul. Dunfermline, October J, 190 If. FALMOUTH. I have the honor to acknowledge receipt of the circular of August 4, regarding a plan for the coordination and improvement of the exist- ing facilities for the collection of commercial intelligence and the pro- motion of American trade interests, I have read the circular with much interest, and would remark that many of the questions that I receive from Washington are on matters of law and custom, which are the same throughout the United Kingdom. I have long been of H. Doc. 245, 58-3 7 98 PROMOTION OF TRADE INTERESTS. the opinion that these could best be answered from a center such as London, and that the multiplication of consular reports on such sub- jects was of no value. My district is so thinly populated and so remote from the great distributing centers that I do not feel that my experience justifies my expressing any further opinion. Howard Fox, Consul- Falmouth, August SO, 190Jf. GLASGOW. • Complying with the request contained in circular of August 4 for an expression of vieAvs on the suggested plan of a working agree- ment between diplomatic and consular officers for obtaining commer- cial intelligence, I have to say that I see no reason why it should not be given a trial. The present system (if it can be dignified as a system), while fruitful of good results, in my opinion is' capable of improvement. There is something lacking. The annual reports of consuls, as published in the Commercial Relations in accordance with paragraph 592 of the Consular Regulations, contain so much that is mere " filling " that the publication, mildly speaking, is unsatis- factory, and its beneficial effect is not commensurate with the expense involved in its compilation. Moreover, some things are published which might be omitted with advantage to American interests. Re- specting this statement, the fact becomes more apparent when the varying conditions of countries are taken into consideration. A pub- lication of a certain item of information, while perfectly harmless as to one country or a group of countries, may, because of certain local conditions, be very prejudicial as to some other country. A capable censor in the country in which the report originates, familiar with the peculiarities of local conditions, could suggest changes in such reports that would eliminate objectionable features. It may be said that the consuls themselves are in position to be the best judges of what is proper, and this is true, but the consul can easily shift the burden by leaving his superiors to edit his reports, after he has given what he conceives to be the facts. His superiors, however, not being in the country, are not in position wisely to determine what facts can safety be made public. I do not think the present system affords opportunity sufficient for the superiors of the consuls, from time to time, to visit the individual consulates. Personal contact where the work is done would be mutu- ally beneficial, and lead, I have no doubt, to more efficient service. I have been at this consulate seven } T ears, and with the exception of a hurried call which I received from the late Consul-General Osborne, three months after I was installed, I have not had a call from any of my superior officers. It may be said that they have such confidence in my capacity that their presence here is not deemed necessary. This is indeed flattering, but it is not sufficient. If I am doing good work, it would not interfere with it were my superiors, now and then, to " drop in," satisfy themselves of the fact, and tell me so; and if I am not doing as well as I ought, a timely visit from a chief might dis- cover the defect and give a word of advice. Paragraph 13 of the Regulations is not broad enough. The consul-general hesitates to PROMOTION OF TRADE INTERESTS. 99 make application for permission to go on what some hypercritical person may style a mere u junketing '■ expedition at the cost of the taxpayers, and so, unless ordered, he does not go. But still better effect could be realized from inspections made by one of the Secreta- ries of State. At least, the inspecting officer should have an official rank superior to the consuls. I am using the word " inspection " in the broader sense of best means to gain commercial intelligence. The plan suggested in the circular, while not as comprehensive as I would like to see tried, yet, it seems to me, has merit and should be given a chance. Samuel M. Taylor, Consul. Glasgow, August 3J, 190 1^. HULL. I have the honor to acknowledge the receipt of a circular from the State Department having for its subject the " Promotion of trade interests " of America, and to that end proposing the cooperation of the diplomatic corps with the consular service. The accompanying circular asking an expression of views from consular officers has also reached me. Before giving an answer to the questions asked, please let me say : The facts which have made the most decided impression upon me during my brief time in the service are the want of a systematic and comprehensive plan of consular work, the consequent loss of much valuable time and labor, and the absence of a restraining force on con- suls caused by the lack of a near-by authority. It should be explained that I have been in the service less than a year, and that I came directly from an office where strict discipline was enforced and con- secutive work demanded. The change to a situation where the consul is, to a large degree, master of his own time and methods is doubtless one reason for this impression. A longer service might modify my views somewhat in this respect. Some of this lack of discipline in the consular service and a part of the desultory methods of work prevalent have doubtless resulted from the old plan of appointing consuls, when the service was used simply as a political perquisite. The change for the better in this respect has been marked, but there are still enough consuls of the old class in office who are unable to recognize the altered spirit and who fail to respond to the new demands to color the work of the service to an appreciable degree. This is one cause of whatever lack of efficiency has been noticed in the consular corps. Another, and a more potent cause, perhaps, is the absence of near-by authority and the necessity of leaving consuls largely to their own control and initiative. This is an unavoidable result of the distance from Washington at which consuls are placed, and the impossibility of the State Department keeping these officials under constant and watchful supervision. It is highly creditable to the consular corps that, under such conditions and subjected to many temptations, so few of its members h#ve been found untrustworthy. With a near-by authority to which consuls would bG accountable, and which could also collect and disseminate information, study the local industrial situation comprehensively, 100 PROMOTION OF TRADE INTERESTS. and aid with advice and direction, much could be done to add to the efficiency and productiveness of the service. A more direct and acknowledged connection with the diplomatic corps would aid consuls themselves. It would add a new dignity and importance to the office and so increase its influence, I regret to say that there is a depreciatory opinion widely prevalent in America con- cerning consuls. The general impression appears to be that these officials are about on the level of a hotel call boy for whom anyone can whistle when their services are needed, and to whom a nickel can be tossed when the errand is performed. I suppose I have received during my eleven months" service 500 or 600 letters from business firms and manufacturers in America asking for information on all sorts of subjects. To get the information required has often taken much time, and on occasions some expense; but the work has been done ungrudgingly. Every one of these letters has been answered promptly. But out of these* 500 or 600 correspondents only two have had the courtesy to acknoAvledge the receipt of my reply and thank me for the service. Perhaps if these people knew that the consular service was a cooperative branch of the diplomatic corps, they would be more thoughtful. Some of the same opinion of consuls, though to a less degree, exists in England, and I suppose in other European countries. Here it is largely the result of the moderate salaries paid consuls, their conse- quent inability to attach much importance to their office, and their apparent nonrecognition by the diplomatic representative from their own country. A more generous treatment by the home Government and a frank recognition by and cordial cooperation with the diplo- matic corps would add sensibly to the standing and influence of American consuls abroad. Whether the diplomatic corps would be the center best adapted for placing such authority over consuls as would be necessary to insure cooperation would depend largely upon the kind of man chosen for the office and attached to each embassy. If the choice fell upon one who never saw the inside of a factory and who knew noth- ing of the fierce competition inseparable from modern industrial life, whose chief recommendation was his ability to look well on parade and " shake his heels in a ballroom," I do not think that the result would be encouraging. But if a practical man, with a knowl- edge of industrial conditions in his own country and in the country to which he may be sent, and having the faculty to grasp the situa- tion and the tact to work with consuls appointed, I am inclined to believe that good results would follow.' Consuls are naturally jealous of their authority in their respective districts and sometimes impatient of outside interference, and at first there might be friction between them and the diplomatic repre- sentative and a disinclination to work in harmoiry; but this disposi- tion would quickly disappear when the system was once in working- order and the consular corps inspired with the new spirit of things. I should conclude, on the whole, that a closer union and a more active cooperation between the diplomatic and consular corps would increase the usefulness of both services and add sensibly to the dig- nity and importance of the consul. Walter C. Hamm. Hull, August 25. 1904. PROMOTION OF TRADE INTERESTS.. 101 LEEDS. I have to acknowledge the receipt of an instruction from the Department of State in regard to a plan for the coordination and improvement of existing facilities for the collection of commercial intelligence and the promotion of American trade interests abroad. The Department desiring an expression from the consular officers of their views thereupon, I beg to express the belief that the scheme is one fraught with promise in effectively opening the way to organ- ized and systematic action that would lead to a great advance in American trade interests abroad. Lewis Dexter, Consul. Leeds, August 31. 1904. LIVERPOOL. I have the honor to make report in response to circular instruction of the Department dated August 4, 1904, inclosing a circular to the American diplomatic officers in regard to the promotion of trade interests. Responding to the desire of the Department for an expression of my views upon this subject, I beg to saj^: It has long been my opinion that the foreign trade interests of the United States would be subserved by the appointment of commercial agents, and particularly by the appointment of a commercial attache of the American embassy at each of the principal commercial coun- tries of the world. Speaking with the candor which I am sure the Department desires, I would say that I doLibt whether any satisfac- tory arrangement can be made by which the ambassador or minister himself should undertake commercial duties, excepting in so far as commercial matters may relate to diplomacy. In this country, and I believe in all the Old-World countries, there would, I think, be a preju- dice against a diplomatic officer so acting; but I think the difficulty could be obviated by having a commercial attache connected with the embassy. I remember, some time ago, at a public function of an his- toric trade guild in London, meeting a commercial attache of the Ger- man embassy. He told me that the German embassy was the only one which had a commercial attache connected with it. He was a scientific man, and he told me that at that particular time he was making inquiries as to the production of certain metal manufactures, particularly those of steel and iron. Without a doubt, consuls are often unable to procure valuable in- formation for the reason that they have not any diplomatic status. A commercial attache, connected with the embassy, could study the general conditions of the trade of the country to which he was accred- ited, and could make valuable suggestions (through the State Depart- ment, if necessary) to consuls at particular posts, and. could indicate valuable lines of inquiries. For instance, Liverpool is, I believe, the port of entrance for two-thirds of the agricultural and farming and dairy exports of the United States to Great Britain: but London is the great seat of commerce of this country, and a commercial attache would be far better able to watch the developments of this trade than the consul at Liverpool is able to do. One great trouble with our consular service with regard to making reports upon trade matters is that the routine work of consuls is in- 102 .PROMOTION OF TRADE INTERESTS. creasing all the time, and a consul really has very little time to so mix in the outside business world around him as to properly inform him- self upon commercial matters. American citizens visiting this coun- try expect the consul to be in his office all day, and grumble if they do not see him. A commercial attache would be free from the con- fining requirements which pertain to a consul, and for that reason would be much better fitted to make the necessary inquiries upon which reports are based. , James Boyle, Consul. Liverpool, August 30, 1904. MANCHESTER. In reply to the Department's circular, *' Promotion of trade inter- ests,'' I would beg to say that during the twelve years of my consular service I have very rarely found any necessity of appealing to embassies for assistance in procuring information. In the few cases where such help was needed, it was given promptly. The appointment of commercial attaches by foreign powers has been, so far as I have seen, more to make up for the lack of proper reports from a consular service,- which has not been composed of men who were fitted to understand the commercial conditions at home or abroad, as has been the case with most European nations. I would suggest that circulars, which affect broadly the whole country, and concerning which data may be in possession of central government boards or departments, like ours in Washington, could be sent to embassies, as at present constituted, as well as to consuls. The result would be the fullest possible discussion of the subject, and. incidentally, the practice could be made use of to train the younger secretaries in work which would not only better fit them for diplomatic services abroad, but also for their several places as Ameri- can citizens at home, The tendency to any centralization of control, apart from that of the State Department, would, in my opinion, be detrimental to the best work of either diplomatic or consular service. Under these circumstances, a commercial attache would seem to me to be an extra piece of Government machinery, which would be of little real service, Wm. Harrison Bradley. Manchester, September 9, 1904- NEWCASTLE ON TYNE. I have the honor to acknowledge receipt of circular in regard to the promotion of American trade interests, and in reply would say that, in my opinion, it would greatly facilitate the trade inquiries which the Department has in view if such inquiries passed through some head who could obtain general information from such sources as those indicated in the circular and could collect from the con- sular officers such information as is available in their districts. It is manifest that it is absolutely impossible for consular officers to obtain the information which is asked for in many of the inquiries, as there are no official data in their districts to go upon, but all that PROMOTION OF TRADE INTERESTS. 103 is desired of a general character could be obtained without any difficulty from a central authority, and the consular officers would, of course, always be anxious to supply any supplementary informa- tion that might be accessible in their particular neighborhoods. As a rule we have always found the local authorities very courteous and obliging in supplying information of a statistical nature, and regarding inquiries of a more private kind, I have no doubt that, if the request was backed by a central authority, the required information would be more readilv obtained. Newcastle on Tyne. September 28, 1901^. H. Nixon, Consul. NOTTINGHAM. I have the honor to acknowledge the receipt of circular, Ci Promo- tion of trade interests, " wherein consular officers are directed to express their views on the subject treated of. In my personal consular experience, there has never been an occa- sion when the aid of a diplomatic officer would have secured commer- cial or industrial information which I could not otherwise obtain. I can readily perceive, however, that such would probably not be the experience of a consul or consul-general in a capital city when required to obtain unpublished statistics or other information from the general government. In this country practically everything in the way of general com- mercial and industrial information is printed in the " blue book " of the Parliamentary Paper, which may be had of the publishers by anybody for a few pence or shillings. Therefore, according to my experience, a consul at an interior post like Nottingham has no occa- sion to apply for commercial or industrial information to any public officials, except county and city, and these are uniformly courteous and readily give all the information desired. The transmission through diplomatic officers of instructions to consular officers in particular cases, and the return through the same channel of the consular reports, pursuant to such instructions, with suggestions and annotations by the diplomatic officers, would, in my judgment, often be helpful to a consul, as well as to his reports. It is possible that some consuls might be disposed to resent this propo- sition; but the only serious objection, it seems to me, v\ T ould be the unavoidable delay caused by this mode of transmission in the receipt by the Department of State of reports wherein time was an important element. In the promotion of American trade interests otherwise than by assisting in the collection of information for reports, diplomatic offi- cers could aid consuls very materially by suggestions w T hich might not have occurred to the latter. Broadly considered, the plan outlined in the circular to American diplomatic officers would, in the opinion of this consulate, produce good results more than counterbalancing all apparent objections to it. Frank W. Mahin, Consul. Nottingham, September .?, 190 %. 104 PROMOTION OF TRADE INTERESTS PLY3IOXTH. The system by which consular officers collect information as to busi- ness conditions in the countries to which they are accredited is, under present conditions, far from efficient. This fact is generally recognized by consuls who have taken the proper interest in promoting Ameri- can commercial interest- in the United Kingdom. England is. by far. the greatest purchaser of American goods and produce, and the business interests existing between the two countries are so elaborate, complex, and constantly widening that the methods now employed in the collection of industrial data are not sufficiently thorough and sys- tematic. The developments of the world's trade demand the reorgan- ization of our service. Under a new form of routine, it could work with renewed energy and better results. The utility of its reports would be greatly increased by a closer and more active cooperation of the diplomatic and consular service, as suggested in the Department circular. To this end. I would respectfully suggest that each of the im- portant embassies there be accredited a commercial attache whose sole duty it should be to watch and further the commercial interests of America. Through him all consular officers should make their reports, which should be confined to their respective districts. Those matters which apply to the country at large should be covered by the reports of the attache himself. This would prevent duplicate matter being prepared at unnecessary expense and labor. It would also greatly reduce the editorial work of the Department at home. The present lack of diplomatic status would in this manner be supplied. Such an innovation would be of great service to America. Jos. G. Stephens. Consul. SHEFFIELD. In compliance with circular of August -k I have the honor to sub- mit herewith my views. I am of the opinion that if the suggestions embodied in the circular to diplomatic officers were put in force in their entirety it would result in putting the diplomatic service of the country upon a com- mercial basis that would inevitably lower its standing and decrease its efficiency without corresponding benefit to business interest-. There are some lines, however, along which the diplomatic corps could cooperate with the consular force with benefit to trade interests without injuring its standing in the least. This is notably the case in all inquiries sent out relating to legislation or change in the laws of the country inquired about. The diplomatic corps, by reason of its location at the capital or near the seat of government, would be able to furnish more complete and exhaustive information on these subjects than the best trained and experienced consul could hope to obtain. If the suggestions in the circular were put into force, it would be manifestly impossible to expect the ambassadors to give their per- sonal attention to this matter. The work of investigation would necessarily have to be delegated to subordinates. By so doing a great portion of personal prestige would be lost; information that would . PROMOTION OF TRADE INTERESTS. 105 freely and fully given to the principal would often be scant and curt if asked for by anyone else. This being the case, the result desired could best be obtained b}^ the appointment of a commercial attache to all of the leading embassies. An appointee of this charac- ter carefully selected for his business experience and judgment, prop- erly accredited to and accepted by the government of the country to which he is appointed, backed up by the prestige of the diplomatic corps, of which he would be a member, could make himself of great help to the consular force and would in time become a powerful agency for the extension of home trade. The suggestion that consular reports be transmitted through the diplomatic corps, there to be reviewed and annotated and then for- warded to the Department for final decision as to what should be printed, would be a good plan. It is easily conceivable that a consul might write so fully and freely about local conditions that actually existed within his immediate sphere of observation as to give offense or perhaps cause embarrassment in the diplomatic relations that existed "between the two governments, but if his reports were revised and annotated and the unwisdom of their publication either wholly or in part pointed out, this danger would be avoided. Ci-ias. N. Daniels, Consul. Sheffield, September 1, J904- SOUTHAMPTON. In the circulars remitted to this consulate by the last mail I find one relating to the " Promotion of trade interests," and I respectfully submit the following views on the subject: 1. From the consular point of view, I can see no reason why the cooperation suggested between the diplomatic officers and the consular service in the interest of trade extension should not prove distinctly advantageous and satisfactory. My personal observation of the prac- tical working of this plan in connection w T ith the service of another country, as carried out in South America, leads me to believe that the same could be adopted by the American service with positive and per- manent results. 2. The free initiative on the part of the consular service should be fully maintained. That has been the distinguishing feature of the service, and has led to the splendid results which have marked it, and has won praise from the whole commercial world and from its most prominent commercial bodies. In the operation of this plan, I make free to suggest, there should be constant and cordial touch between legations and consulates, such as is not maintained in all cases at the present time. With regard to the plan of France, which is above referred to, there is a perfect entente eordiale between the two branches of the service: and they are further aided by commercial attaches, holding semiconsular rank, whose duties may be said to be more of a technical character, but still generally used. The extra cost of obtaining comprehensive information relating to a subject, or group of subjects, thus involved is all provided for governmental ly, and the favoring results for France in those countries abundantly testify to the wisdom of the plan. It may be said that our own Agri- 106 PROMOTION OF TRADE INTERESTS. cultural Department successfully follows out this method in a way in maintaining in the field competent investigators, whose reports have been of a value far beyond common expectation. 3. In my own experience at Montevideo, where for nearly six years I worked diligently for an uplift of trade with the United States — and worked alone, not being able to secure diplomatic aid — -I learned the helpful value of a willing legation. I learned how much an amiable legation counts for in trade when I saw commercial advan- tages slipping out of our own hands 'through the lack of such coop- eration — slipping into hands, too, of other nations where practical methods prevail through cooperative efforts. In cases where partial success was brought about, it was through other and personal means and influence. 4. In my opinion, the commercial work in every field of the foreign service of the United States begins at the door of the embassy and legation and ends only with the outgoing cargo. The consul, tts the direct commercial representative, should be the initiator .^ The influ- ence and prestige of the diplomatic representative should be freely and generously extended. There is no need of friction. There is nothing more surely required than the widest and frankest coopera- tion to the end of extending American trade to the utmost throughout every portion of the globe, and promoting the interests and the growth of our country in every foreign field. Albert W. Swalm, Consul. Southampton, August 25, 190 If. GREECE AND THE BALKAN COUNTRIES. Report from, the Legation. American Legation. Athens , August 87. 190 If. I have the honor to acknowledge the due receipt of the Depart- ment^ circular of the 29th ultimo, relating to the " Promotion of trade interests." In view, however, of the complicated character of my mission, it is practically impossible for me to give categorical answers to the questions contained therein. In Greece, we have two American consuls, one of whom resides in the capital, and two non- American agents, one living at the Piraeus, only a few miles distant from Athens. Generally speaking, these officials are not permitted to communicate directly with any Greek ministry. In Roumania and Servia, we have one official each, gentlemen of non- American nationality, residing and carrying on business in the respective capitals. In accordance with the terms of the consular conventions of 1881. these officials are expressly authorized to commu- nicate with the Governments concerned in some instances, and in practice they arc usually permitted to correspond with the ministers of foreign affairs whenever they find it expedient to do so. In Bulgaria, we have no consular representative of any kind. PROMOTION OF TRADE INTERESTS. 107 Our commercial relations with Greece and Servia, respectively, are based upon most-favored-nation treaties of 1837 and 1881. Those with Bulgaria we base upon the so-called "capitulations" of 1830 and 1862, although the local government does not fully recognize our claims and is at present desirous to negotiate a commercial conven- tion. With Roumania Ave have no other basis for our commercial re- lations than the general principles of international law. In Greece, in addition to their representation at the capital and the consular officials stationed at Patras and Corfu, where we also are represented, all or most of the following countries have consular representatives at Syra, Volo, Zante, Cephalonia, and Kalamata : Austria, Belgium, Denmark, France, Great Britain, Holland, Ger- many, Italy, Portugal, Russia, Spain, and Turkey, while several of them have representatives at other places as well. In Roumania, 13 consular offices exist at Galatz, 12 at Constantza, 11 at Braila, 7 at Sulina, 5 at Craiova, and others at Jassy, Giurgiu, Tulcea, etc. In Servia there are but few (Austrian and Turkish) consular officers outside of Belgrade. In Bulgaria, Austria, Bel- gium, France, Germany, Great Britain, Greece, Italy, Russia, and Turkey have consular representatives at Philippopolis, Rustchuck, Varna, and Burgas, or at nearly all of these places, while Holland and Spain are also represented at Varna. So far as I am aware, none of the countries to which I am accred- ited have regular commercial attaches abroad, and there are no .for- eign commercial attaches resident in their capitals. On rare occa- sions the British commercial attache at Vienna has visited Greece, and his colleague at Constantinople was in Roumania last summer. There is a delegate of the Hungarian ministry of agriculture per- manently stationed in Roumania, but he is not attached to the Austro-Hungarian legation at Bucharest. Under the circumstances, and in view of the fact that American commercial men rarely visit this part of Europe, it will readily be seen that American trade is considerably handicapped in these coun- tries. Personally, I am of the opinion that " the Balkans " offer a good field for American trade, but that field must be worked with knowledge and consideration of local conditions, and I am strongly in favor of the appointment of Americans, either as consular officers or commercial attaches, to reside in Roumania, Servia, and Bulgaria. It is useless to expect the inhabitants of those countries to order American goods on their own initiative, when foreign goods are to be had on shorter notice and easier terms, and it is equally useless to expect a United States consular official of non- American nationality — who usually is the agent for non- American commercial houses as well — to show any great amount of zeal in the development of a market for American goods. The more or less frequent distribution of advertising matter, generally printed in English, does not do much good, and but little can be hoped for until Americans begin to take up the question seriously and to study the local commercial conditions. I ^ee no reason why it should not be practicable for me to transmit to the consular officers in the countries to which I am accredited such instructions as the Department may see fit to send from time to time, and I would, of course, be glad to give these officers any assist- ance in my power to enable them to carry them out in a satisfactory 108 PROMOTION OF TRADE INTERESTS. manner. I am also ready to revise and annotate their reports to the best of my ability, although, as will readily be understood, my sources of information must frequently be more restricted than theirs. Generally, in the services of the countries with which I have any acquaintance, consular officials are more directly subordinate to the diplomatic mission in the country in which they serve than is the case with us. In foreign diplomatic and consular services, how- ever, the conditions of rank, tenure of office, etc., are so different from ours that it is difficult to make comparisons. Undoubtedly, our diplomatic and consular services may, at time-. be " powerful auxiliaries in the great and constantly growing work of equipping our manufacturers and exporters for effective compe- tition in the world's commerce," but it has been my experience that, in Europe, at least, but little A^aluable information to this end can be obtained through official sources. Trade competition generally is becoming keener and keener and really useful information can rarely be obtained except by interested experts acquainted with local conditions, as well as the qualities, etc., of the goods which they wish to place. That our diplomatic and consular officials should cooperate in the promotion of American trade interests, however, seems to me to be not only possible and practicable, but wholly natural. Under existing conditions, many American articles are imported into this part of Europe through middlemen (Hamburg, Trieste, Liverpool) without the buyer either knowing or caring anything about their origin, or their appearing as American goods in the-local statistics. John B. Jackson. P. S. In reply to question 3 in the circular referred to above. I have to say that I do not think that any additional assistance would be needed to enable me to carry into effect the programme described under question 1, unless the Department should consider necessary the occasional employment of a lawyer or other expert. Opinions of Consular Officers. ATHENS. In response to the Department's instructions of the 4th ultimo, which inclosed a copy of a circular to the American diplomatic officer- in regard to a plan for the " coordination and improvement of exist- ing facilities for the collection of commercial intelligence and the pro- motion of American trade interests abroad," and requested an expres- sion of my views upon the subject, I give my views as briefly as possible. I have read and reread the plan, and have given it much thought. As I believe that it would humiliate the consuls, cause serious friction between the diplomatic and consular services, and have quite the opposite effect to that desired, I have nothing to say in its favor. Daniel E. McGinley, Consul. Athens, September 10, 190 Jf. PROMOTION OF TRADE INTERESTS. 109 PATRAS. Replying to your circular dispatch of 4th of August, entitled " Pro- motion of trade relations," and a request for comment thereon, I have the honor to state that in my judgment were a consul invested with the right and privilege of asking from a diplomatic officer, located in a country or district where both were officiating, a reasonable amount of information of a specific nature, bearing upon commercial or trade relations, for transmission to the home government, he would unques- tionably be in a position to secure through the agency of such diplo- matic officer much desirable and even valuable information which it might otherwise be extremely difficult for a consular officer to obtain by his own unaided efforts. The proposition, as contained in your circular already referred to, is a commendable one, and has been so explicitly set forth that it practically leaves no further views that I might originate upon the subject. James Verner Long, Consul. Patras, August £7, 1904. ITALY. Report from the Embassy. American Embassy, Rome, September 9, 190 It. In reply to the Department's printed instruction of July 29, 1904, in regard to cooperation between the consular and diplomatic services for the better collection of commercial intelligence, I beg leave to report as follows: I. An ambassador might easily deliver to consuls requests for reports, with recommendations, and might correct reports, according to his ideas and information, as they passed through his hands on their way to the Department. But human nature being what it is, consuls would sometimes ignore, as far as they could, the embassy's sugges- tions; and if they knew what the criticism or emendations of the embassy were concerning their reports the}" would often feel irri- tated thereby. Moreover, except occasionally, the suggestions and criticisms of an ambassador would not be worth much, as his many social and purely diplomatic duties would prevent him from giving profound attention to commercial questions. An ambassador may with propriety consult only ministers and high officials, and to ap- proach these without giving offense at the foreign office is sometimes delicate business. A secretary who occupied himself entirely with industrial, agri- cultural, or commercial investigations -could indeed supply the am- bassador with valuable suggestions and criticisms ; but in that case the secretary might as well be an attache representing the proper de- partment at Washington, just as military or naval attaches represent the War Department or the Department of the Navy. Therefore, if the embassies are to extend their duties so as to include a more minute 110 PROMOTION OF TRADE INTERESTS. attention to the collection of commercial intelligence than at present, I think that each ambassador or minister should have a commercial attache, duly credited, and with a recognized diplomatic rank, which would not give him precedence, probably, over the military or naval attaches. There might be much said in favor of making the consular service entirely subordinate to the diplomatic representatives, upon whom would rest then all initiative duties, as well as the responsibility of general control and direction ; but to leave each service independent as at present, and to try to make them work together in respect to certain reports, would be, in my mind, to contrive a machine which would cause friction, and tend, by dividing the meed of praise as well as the feeling of responsibility, to destroy the spirit of initiative. The action of the Department of State in amending or suppressing a report in whole or in part would, of course, be accepted with silence and respect; but every decision of that kind might cause secret irri- tation, not against the Department, but in one service against the other. The establishment of regular commercial attaches would, in my judgment, secure for the Government the service which is described in the circular as desirable. Such a man should have a technical knowledge of agriculture, commerce, and industry, and should know the language of the nation to which he is sent. He might wisely be chosen from the consular service, or, before arriving at his post, might be required to spend some time in the principal American consular office of the country. His pay should be adequate, he should have a competent clerk, and money should be allowed to pay his traveling expenses when conducting investigations away from the seat of the embassy. An attache accredited to two countries could not wisely be allowed to spend the most of his time in the one he preferred, to the detriment of work in the other. If commercial attaches existed, the consular corps might be almost exclusively occupied in attending to the consular duties, as they are generally understood. The consul -general should not be at the capi- tal, but at the principal port or business center. In Italy this would be a Genoa. Rome is not a manufacturing town, or a port of entry, or even a railway terminus. To the other cities of Italy it holds much the same position as Washington does to other American cities. II. The consular and diplomatic services of Italy are much more closely united than the American consular and diplomatic services. The nominal importance of consuls is much less, and the position of the consul-general, as we understand it, hardly exists in fact. Com- mercial attaches have been ajopointed in a number of cities, but in reply to inquiries I am told that it is yet too soon to say what the results are. Consular reports concerning American affairs which are most esteemed in Italy come from the office of the Italian consul in New York. The diplomatic status of the Italian commercial attache is not clearly defined, but he is, as a matter of fact, closely allied to the ambassador. In Rome the commercial attache of the British embassy, who is also attached in Vienna, is received at court on the rare occasions of his presence in Italy. It is the experience of the PROMOTION OF TRADE INTERESTS. Ill British embassy in Rome that a commercial attache should be obliged by the regulations of the service to be actually in each country to which he is accredited a fixed period of time each year. If we had a commercial attache at this embassy, and if it were desired to have him work in Italy and another country, the other country, in my opinion, should be Switzerland and not Austria. Two countries would fully occupy an industrious man. If cooperation such as outlined in the Department's circular existed between the American consular and diplomatic services in Italy, the embassy at Rome would require another secretary and an additional clerk for him. The embassy's offices would have to be enlarged and the contingent fund increased to pay for additional domestic service, cleaning, heating, lights, etc. An effort should also be made to have all the employees about the embassy American citi- zens. No foreigner should be employed about the place even in the smallest capacity. Lewis Morris Iddixgs, GharqL Opinions of Consul- General. ROME. In answer to Department's circular, " Promotion of trade in- terests," I have to say that I have given of late years much attention to this subject, and in a report made by me in 1898, after an inspec- tion tour of consulates, I suggested to the Department : In view of the recent circular of the Department, dated August 5 last, re- quiring from the consular offices a very minute report on the commerce, indus- tries, and other economical, governmental, and municipal matters, and consider- ing the importance and usefulness of such a carefully prepared report, I have taken this subject up with various consuls under my jurisdiction while on my inspection duties, and with them have come to the conclusion that the public interests would be better served and the aim of the Department attained if in- stead of each and every consul preparing and sending to the Department an independent report, all containing very much the same matter, each consul made a report upon the special commercial, industrial, and other interesting features of his respective district and sent it to the consul-general. The con- sulate-general would compile these various reports, giving to each district proper credit for the information furnished by it, and add, furthermore, to same all the statistical and other data it is in better condition than the consuls to gather at the capital, where all the public departments are centralized. It is easy to conceive that all the consulates cooperating in and contributing to one and the same work the result could not fail to be most satisfactory. Such a report would necessarily be very complete and cover a great deal of use- ful information upon every branch of commerce, industry, finance, and gov- ernment and city administrations. It would also have the advantage of an- swering many inquiries from American correspondents, inquiries which often- times can not be answered for the lack of means of procuring the desired in- formation, and when answered, seldom in as satisfactory a manner as one would wish. It still is my opinion that commercial and trade reports to be com- prehensive, thorough, and useful should be prepared by the consul- general at the central seat of the government to which he is accred- ited. Said report should be based upon information furnished by each individual consulate at request or upon its own initiative and especially upon reliable statistics and other information obtained by the consulate-general from the various government departments. 112 PROMOTION OF TRADE INTERESTS. Such information is always more readily obtained by this office and with less red tape and conventionalities' than by the channel of the embassy, which, by the diplomatic rules, may only communicate with or through the foreign office (a very slow process), while the consul- general may correspond with or interview any government official di- rectly and without intermediary. This is so true that the embassy always use the consulate for any speedy information they may re- quire, while the consulate has no need to call for assistance upon the good offices of the embassy except in special diplomatic cases. Italy has no commercial agents attached to her embassies or lega- tions in Europe. England has lately appointed such an agent to the embassy in Rome. England, however, has no consul-general at the capital. The appointment of a commercial attache would certainly lighten the burden of the consular officers and relieve them of some extra work, though a profitable one. when it is considered that while the consular officers gather and supply commercial information to the commercial world they at the same time educate themselves and ac- quire such experience as will better fit them to continue in the career or to render personal and useful services for the benefit of American commercial interests. I think that the object contemplated by the appointment of a com- mercial attache could be carried out in the following manner : 1. That all commercial reports and trade information be prepared by the consul-general. 2. That consuls, by request or upon their own suggestion, forward to him individual reports upon the special industries and trade rela- tions interesting their districts. 3. That the Department allow to the consulate-general an appro- priation not to exceed $800 per annum for the purpose of securing adequate clerical help and statistical information for the preparation and compilation of said reports. I. That once in a while the consul-general at the most convenient time visit personally the consulates within his jurisdiction for the purpose of consulting with his colleague and the local chambers of commerce upon all matters of interest to our commerce and industries. all of which would be incorporated in a special report. One month should suffice for such a mission, at an expense not to exceed $400. 5. If advisable, the consuls-general might, in addition to their title, be given that of " commercial adviser ? ' attached to the embassy, and this simply in view of securing for them more consideration. This suggestion if carried out would, I believe, fill all the wants and fully answer all purposes. With the system novr in use. the consular reports must obviously be incomplete. Xone of the offices is sufficiently equipped in clerical force and otheiwise to adequately cope with this work. On the other hand, the consuls in the provinces have not at their disposal the general statistics nor the central government's source of informa- tion upon which the consul-general can constantly draw. Such consuls must and do apply to the consulate-general for information they can not secure in their own districts, with the result that their reports often conflict and contain useless repetitions. It i> also to be considered that the Italian laws governing trade and commerce and its agencies are national: that all amendments, PROMOTION OF TRADE INT E RESTS. 113 changes, and interpretations must emanate from the central gov- ernment. It is therefore obvious that the consul-general at the capital is placed in a better position than his colleagues in the provinces to secure reliable information. What I say of the consul-general would be true of the commercial attache, if one be appointed, and therefore either measure would, I believe, be a step in the right direction. It is, however, proper to observe that the problem of promoting trade between America and Italy can not, in my opinion, be solved by the appointment of a commercial attache or otherwise as long as our American manufacturers will not themselves show a desire of cooperating with official efforts and entering the field in compe- tition with other countries. My experience of seven years in Italy has confirmed me in the belief that American manufacturers are, as a rule, not at all anxious to invade this market. This is easy to understand, too, when one considers the continuous commercial and industrial prosperit} r in America and the vast home consumption which absorbs almost the total production. Outside of natural products, of some specialties, and of certain articles which fear no competition, there is comparatively very little exported from America into Italy. This is wholly due to the fact. that the Ameri- can manufacturers, finding a ready home market for their products, will not change their methods for the sake of doing business abroad, unless obliged to. They are not willing to meet the same condi- tions as granted by European producers. So far I know of only one enterprising shoe concern, of Lynn, Mass., which has an active agent in Europe who, two or three years ago, undertook a business tour of this county. The first year his success was indifferent, yet he managed to place a few orders; he was sufficiently encouraged to persevere, and last year, when he visited my office, he told me that the concerns he had dealt with had since more than trebled their orders and that he had secured new customers, realizing thereby a great deal more than he had hoped for in such a short time. That shoe concern adopted the same methods and agreed to the same conditions accorded by German, Austrian, and other European manu- facturers. It made a personal effort to introduce its goods, got acquainted with the prospective clients, studied their financial stand- ing, ascertained the amount of credit they might be allowed; in a word, it met the commercial conditions of the market and was thus enabled to successfully compete with European manufacturers. I suppose that that particular shoe concern was pushed to seek new markets on account of the unsatisfactory condition of the shoe busi- ness in America, due to great competition and overproduction. Their agent in Europe was an intelligent and competent man; he went to AYork in the right direction, and was rewarded by success. One thing is certain and let it be borne in mind : "American goods, on the same terms, will always command the preference," for they have a reputa- tion for workmanship, quality, and durability. I am, therefore, afraid that, as long as prosperity prevails in the United States, there is little cooperation to expect from our manu- facturers and producers. Hard times, such as we had before 1897, may change the situation. I have been preaching for the last seven years, and I have tried to convert the American manufacturers and H. Doc. 245, 58-3 8 114 PROMOTION OF TRADE INTERESTS. capitalists I hare come into contact with to my views, inviting them. to study the Italian market, while they did not need it, in order to be ready for business at a time when conditions and overproduction in America would make the seeking of foreign markets imperative. ]\Iy colleagues, as well as myself, constantly respond to inquiries from American . correspondents in regard to business prospects in Italy. We promptly give all possible useful information and encour- agement ; but I, for one, am yet to find the concern that has taken the trouble of going deeper into the question than their first inquiry. Therein lies, in my opinion, the difficuhty of the situation. The markets are open to our products if our producers will only take the trouble of entering them in the proper way. While I was writing the above, I met an American gentleman, agent of a very large coal company in Penns3dvania, and I under- stood from him that he had just succeeded in making some satisfac- tory contracts for supplying cargoes of American coal. He had, of course, first of all Al coal; secondly, he made a personal effort to convince the buyers of the superiority of his goods, and thirdly, he secured orders at a higher price than British coal is sold in the market. This is another proof that the market is here, if only our manufacturers and exporters will make a serious effort to secure a share of it. Another important point connected with the development of Amer- ican exports into Italy is the necessity of establishing direct banking* relations between the two countries, which would greatly facilitate commercial intercourse. The establishment in Italy of an American banking institution should receive the attention of our financiers. Hector de Castro, Consul-General. Rome, October 13, 1904. Opinions of other Consular Officers. CASTEIXAMARE DI STASIA. I have the honor to acknowledge the receipt of the Department's instruction regarding " Promotion of trade interests " of August 4, 1904, with the circular to diplomatic officers inclosed. It is evident that the advantages of cooperation of the consular and diplomatic services must depend upon the case in point, and a gen- eral rule would be difficult to lay down. I believe, however, that the two corps could work together advantageously if something like the following suggestions were adopted : If a consular officer receives an instruction from the Department, some portion of which calls for information which he believes could be better obtained by the diplomatic representative than by himself, he should then write a report containing such information as he had been able to gather and forward it to the embassy or legation, with a request that the questions which he, the consular officer, was unable to answer be replied to, and the completed dispatch forwarded to the Department. Another method of obtaining the same result is the following : Let all consular officers be instructed that when information is required PROMOTION OF TRADE INTERESTS. 115 by the Department which, in the consul's opinion, could be obtained AA-ith more dispatch and accuracy by the diplomatic representative than by himself he, the consul, should then write directly to the diplo- matic representative, requesting that the information be sent to him. The consul could then embody the information thus obtained in his report, noting what portion was supplied by himself and what by the embassy or legation. An instruction from the Department permitting consular officers to correspond with diplomatic officers whenever, in the opinion of the former, the exigencies of the service required it would at once put the two corps into cooperation. The correspondence could, of course, be carried on through the consulate-general, but this might cause some delay. C. S. Crowninshield, Commercial Agent. Castellamare di Stabia, September 1. 190 If. CATANIA. After careful consideration of the circulars dated July 29 and Au- gust 4 last, I beg to offer as my opinion that the conferring -of diplo- matic status on consuls would not be an additional advantage in regard to securing commercial information. As far as concerns this consulate and the Italian officials of the consular district, the consul has always had every courtesy shown him in official dealings with officers of all departments, governmental, provincial, and city. All information asked for is given promptly and obligingly. The em- bassy at times requests information from the consul regarding prod- ucts and statistics of the district, which information is always promptly and cheerfully given. Catania, October 15, 1904. Alexander Heingartner, Consul. GENOA. In reply to the request contained in Department circular, Promo- tion of Trade Interests, of August 4, for an expression of opinion on the circular to diplomatic officers inclosed therewith, I beg to say that the idea of establishing some central authority for the direction and subsequent oversight of the reports prepared from time to time by the consuls of the country on a given subject seems very desirable. At present consuls in different districts often collect with much effort identically the same material. Such overlapping and reduplication result in much useless consumption of time for those who prepare the reports, and must necessarily result in further waste of time and dis- appointment for the bureau which intends to derive practical results from them. With an intelligent direction from some one who would acquaint himself with the general field of the country and the situa- tion of its various parts with regard to the inquiry proposed, each consul could work upon a portion of it assigned him and coulcl thus be both more brief and more forcible and thorough than now. He would cooperate with his colleagues in a combined effort instead of replacing and often conflicting with them. 116 PROMOTION OF TRADE INTERESTS. A trained commercial attache assigned to the embassy would seem to be an excellent means of bringing about this end: or the powers of the consul-general might be increased in this way and a small appropriation made to aid in the work. William Henry Bishop. Consul. Genoa, Septcmhcr (J. 1904. LEGHORN. Acknowledging receipt of circular of August 4, I have the honor, as requested, to submit my views on the subject, as follow> : Generally speaking, statistical information relating especially to the volume of trade within a particular consular district (imports. exports, shipping, etc.) is furnished by local officials, who it may be said, and speaking from my experience here, are usually willing to assist the consular officer in this respect, so far as lies in their power. It is. however, undoubtedly true that the sources of accurate official information which a consular officer can without great difficulty dis- pose of are in most instances limited to his own district and in many cases simply to the place where he is located. To overcome such diffi- culties in the preparation of reports on subjects of more general inter- est and importance the plan outlined in the circular above referred to appears to be one of great utility. The suggestion as to the appointment of commercial attaches, charged with the special duty of collecting industrial and trade information, is certainly a most practical one. It frequently occurs that, in the collection of commercial data for private parties in the United States, as well as for the Department, a visit to the locality or localities where fuller and more accurate knowledge might be obtained would be of great advantage and render possible the com- pilation of more comprehensive reports on the subject. At present a consular officer is not authorized to incur any expense in such cases, but a commercial attache, in touch with the centers of official infor- mation, and with authority which would enable him in special cases to personally make investigations or empower the consular officer to do so on the spot, would, cooperating with the consular officer, be in a position to render very valuable service. There are, doubtless, many other considerations favorable to the project, including that of the saving of much valuable time, etc., which will be brought to the attention of the Department by con- sular officers, whose views have been requested on the subject. For myself, I should be very glad to see the work of collecting informa- tion facilitated, and I am, therefore, most heartily in favor of the proposed plan. Jas. A. Smith, Consul. Leghorn, August 27. 190 4. 3IESSINA. In reply to circular of August 4. " Promotion of trade interests.'" I have to report as follows : In an experience of eleven years at this consulate, I have never found occasion to apply to the diplomatic officer at Eome for his PROMOTION OF TRADE INTERESTS. 117 intervention in securing commercial information. The circulars received have always asked for facts or statistics appertaining to this district, which, if at all attainable, could be gathered by me on the spot. Indeed, there are a great many facts that a consul can get, which the ambassador could not. -Instead of the ambassador being of service to the consul in ques- tions of commerce, I look upon the situation as reversed, for in numerous cases the latter can be of great service to the former. Of course, to a consul-general residing at the capital, who is called upon to make reports upon subjects, data, and statistics which can only be obtained from the government offices there— such, for instance, as the department of public works, direction of forestry, etc. — the embassy can be of assistance by corresponding directly Avith the officials, thus avoiding the delays which the consul-general would be sure to encounter before he would receive a satisfactory reply. A commercial attache at each embassy, I respectfully suggest, would be useless and detrimental to the efficiency of the service. As the matter stands at present, the Department of Commerce and Labor or the Bureau of Trade Relations receives inquiries from all parts of the country for information, and those that are deemed worthy are reduced to a circular and transmitted to the consuls, who prepare their replies to the best of their ability and forward them directly to the Bureau. If tKey are too prolix they are " boiled down," but the essential information required remains. If, on the other hand, these reports should be transmitted through the commercial attache, the filtration through his office would probably eliminate many vital fac- tors. An infallible consequence, I feel sure, would speedily follow his appointment — -the diversion from the Washington bureau of a greater part of the correspondence, which would find its way to his office, with the result, I fear, that instead of him alone, a number of clerks would be required, and each country would have at its capi- tal a heavily worked branch of the Washington bureau. Chari.es M. Cauohy, Consul. Messina, September 10, 1904. MILAN. In reply to the circular " Promotion of trade interests," I have the honor to report as follows: To consuls who take pride in their work the greatest incentive to voluntary commercial reports lies in the fact that in recent years their efforts to better trade have found such complimentary indorse- ment, both at home and abroad, and in their belief that in developing this field they were adding materially to the prestige of the consular corps. While they will undoubtedly give good service under any ar- rangement that the Department puts into effect, divided responsibil- ity and credit can not foster pride in the work. The Department proposes to adjudicate between the consular and the diplomatic offi- cers in case of difference of opinion, but, nevertheless, the consul's re- port is subject to the diplomatic official, and under the system pro- posed he will not know whether it is the diplomatic official or the Department that has made alterations. 118 PROMOTION OF TRADE INTERESTS. The diplomatic service has channels of information that the consuls covet and that should be utilized if possible. If there could be an attache to the embassy who would work in harmony with the con- suls, who could be applied to at any time for information, who would visit the different consulates, and, working with them, organize for the best results, the effects could not but prove of value. Any service that is specialized is certain to give the best results. Correspondence with American business firms who are seeking trade openings is developing at such a rate that the consuls find less and less time to devote to reports outside of those specifically called for, and if possible the incentive to greater work should be increased rather than minimized. Under the present system, there is a large amount of general infor- mation that each consul is seeking independently which could be fur- nished from headquarters; this, of course, to be supplemented by the local statistics and observations. Reports could be sifted, indexed, filed, and so arranged at headquarters that this great mass of infor- mation gathered in the country in the course of years would be avail- able for instant use and in the most satisfactory shape. Duplication of reports and unnecessary work would also be avoided. If three or four men who have shown special fitness for the promo- tion of trade interests and statistical work should be stationed at American embassies in Europe fcr a year, with the idea of carrying out some such plan as the one above proposed, I do not believe the experiment would prove unsatisfactory. A great deal has been accomplished, but far more is possible. With a growing army of American exporters anxiously seeking the best methods and expert advice, with unfortunate first attempts discour- aging efforts that might otherwise lead to a trade aggregate of mil- lions, the further systematizing and energizing of this branch of con- sular work rises above any question of expense. Harlan W. Brush, Consul. Milan, September 19, 1904. NAPLES. I have the honor to acknowledge the receipt of the Department's circular " Promotion of trade interests," and to report that I most heartily approve of the plan set forth for the coordination and im- provement of existing facilities for the collection of commercial intel- ligence and the promotion of American trade interests abroad. I am of the opinion that the work w.ould be greatly simplified by the establishing of commercial attaches at the embassies and legations, as they would be in a position to systematize the collection and prepara- tion of all reports, and would "know practically the existing condi- tions in each consular district under their supervision. A. II. Byington, Consul. Naples, August 30. 1904. PROMOTION OF TRADE INTERESTS. 119 TURIN. Answering- Department circular in regard to the proposed plan for the cooperation of consuls with diplomatic officers for the purpose of gathering commercial intelligence and promotion of American trade interests abroad, I would say that, in my judgment, the plan is a practical one. At times here I find it difficult to reach " the center of official information," and in such cases hints from our diplomatic officers would bo welcome, as well as helpful, in the collection of the desired information. On the other hand, consuls, by diligent efforts, could render efficient service to our diplomatic officials by collecting and forwarding to them information on any desired subject, and the ministers, with their assistants, by revising, condensing, eliminating duplications or errors, etc., from such reports, could provide the Department with data in a much more finished and desirable form. In brief, I consider the plan proposed by the Department not only practical but business like and* excellent. PlETRO ClINEO, Consul. Turin, August Ui 1904. VENICE. In reply to the request contained in Department circular dated August 4, 1904, for the views of consular officers upon a plan for " the coordination and improvement of existing facilities for the collection of commercial intelligence and the promotion of American trade interests abroad,'' I am necessarily somewhat confined in my view to the experience which has come to me in Italy only. Taking into consideration the subjects submitted to consular offi- cers for report and investigation, it appears that, with rare excep- tions, they are intended <~o cover some specific topic of a purely local character — that is, within the district embraced by the consulate. To illustrate this: A consular officer is called upon, generally, to submit his views on the possible introduction with profit into his district of certain articles of American manufacture or production; this is perhaps the most common kind of report which is required in the service. Or a consular officer occasionally is directed to report on labor conditions, on emigration, on the methods and details of some industry, and the like. Lastly, there is the so-called "Annual Report," which covers the general yearly commercial and trade sta- tistics of the consular territory, with details of interest to American manufacturers and exporters. In all these instances the consular offi- cer bases his replies on personal observation and on inquiries among local dealers, manufacturers, the chambers of commerce, and local, municipal, and government officials. It is seldom that these methods fail to supply all the details which are necessary to meet the demands made by the Department of State, provided that the questions do not tend to reach too intimately into the workings of a private busi- ness. This occasionally happens, with the result that it is quite impossible to secure the desired information; nor would the inter- vention, in such event, of the diplomatic representative prove of the least assistance. 120 PROMOTION OF TRADE INTERESTS However, in the second group of reports mentioned above, it is sometimes the case that, in order to obtain certain statistics or infor- mation, it may be necessary to have recourse to some government department, the local representative of which can not or will not supply the desired information, and it is to such exigencies that the plan evidently refers, for it is said in the circular, " It is to be under- stood that the Department would continue to communicate directly with consular officers as to matters pertaining exclusively to their districts." From the experience of the writer, the Department has always directed that lie report only on conditions existing within his district. Nevertheless, as pointed out above, cases may occasion- ally arise where suggestions or specific information furnished by the diplomatic officer, together with the Department's instructions, would not only greatly facilitate and expedite the work of the consular officer, but would also enable him to give more accurate information, and in this particular would be a benefit and materially tend to increase the usefulness of consular reports. It appears to me, however, that the plan suggested by the Depart- ment, if put into operation, might seriously affect a phase of our consular service which has considerable to do with that utility to which reference is made by the Department in its circular; that phase being its independence and its distinctness from the diplo- matic service. This freedom — for a consul is directly subordinate to the Department of State, usually through a consul-general — from correction and direction by a service which is distinctly separate, is no doubt one source of incentive and accounts for much of the present activity and conscientiousness of the consular service. To remove partially that incentive would seem to risk a setback, unless the resulting gain in another direction would more than compensate for the loss. It has been admitted that it would be of considerable advantage to the consular officer, and consequently to the commercial interests of the United States, to have information regarding questions submitted by the Department of State furnished consular officers by their diplomatic representatives, but it has also been shown that the in- stances are very few where it would be necessary for the obtaining of the required data to seek it through the representative at court. Heretofore when, on rare occasions, it has been necessary, the con- sular officer, I believe, has applied to the consul-general, or to the diplomatic officer through the consul-general, for the information desired. What data the consul-general is unable to supply he ob- tains readily from the ambassador or minister. The consul, there- fore, is accustomed, when necessary, to apply to his consul-general for, and to receive from him, data of a special nature. It is also usually customary for consuls and commercial agents to submit their reports to the Department of State through their consuls-general, and it is to be supposed that any notable errors would be called to the attention of the writer for correction before their reports were finally forwarded to Washington. This being the case, it would not be a charge to apply the plan to the office of the consul-general, which would eliminate the clanger of subjugating the consular to the diplo- matic service. The office of the consul-general and the embassy are usually situated in the same city, and the officers thereof are in close touch with one another, so that when the consul-general could not PROMOTION OF TRADE INTERESTS. 121 supply the information himself he could readily obtain it, as has been done heretofore when occasion demanded, by the diplomatic representative's good offices. Thus no change would be instituted in the present working of the two services. The plan of the Department of State, therefore, appears to me to be valuable in that it promises to enhance to American exporters the value of certain consular reports, but it seems to menace the inde- pendence of the service, which is of value as an incentive to its mem- bers to increase year by year its usefulness to American manufactur- ers and exporters. Inasmuch as the cases are few to which the plan would apply, and the work suggested may be performed by the consul-general's office, it appears to me that the plan would be more effective if applied to the consuls-general rather than to the ambas- sadors or ministers. It would be running a serious risk of disastrous friction to have the two services touch at this one point and at no other. Either the con- sular service should be placed entirely under the direction of the diplomatic service or it should remain separate, as it has always been. Eobt. W. Bliss, Consul. Venice. October 3, 1904. MALTA. Opinions of the Consul. With reference to circular of August 4, Promotion of Trade Inter- ests, I would say that, never having been stationed in a country where I was subordinate to any authority other than the Department, I can hardty speak from practical experience as regards countries wherein are located embassies and many consulates. I am placed in a peculiar position in that my district takes in a whole colony, and T am the only consular or other officer representing our Government. The local government is supreme, practically, and, being the only American officer here, I am able to secure without delay any statistics or other official favors that I may require for my reports. I never have occasion to request or to provide information from or to any but the Department direct. As far as Malta is concerned, for the reasons I have above given, I can see no benefits likely to arise through making this office subor- dinate to any outside the Department. My duties are, to a certain extent, both of a consular and diplomatic nature. Quite a number of our consular officers are in a similar position. The Department does well to refer to " the spirit of initiative." Many of us are jealous of that right, and some could not do as good work if ham- pered. Most consuls interested in preparing and sending in reports have two objects in view. One of them is to increase trade in Amer- ican goods in their districts, the other is to make good records and gain the approbation of the Department. This, greatly tends to engender a spirit of initiative, which should be not only preserved, but also carefully guarded. With reference to countries in which are located, besides our em- bassies or legations, various consular officers, I have long thought that if in each there could be established an officer charged with the 122 PROMOTION OF TRADE INTERESTS. duty of selecting -trade topics of interest to our merchants, with authority to call upon the various consular officers in the country to which he might be accredited for reports upon given subjects, the Department would be in a position to receive valuable matter in a comprehensive form where it now receives but a short, if useful, report covering only a limited territory. It is also very Kkely that if a consul, in preparing a report upon his own initiative, could secure from the capital city information and statistics in the manner indi- cated by the Department's circular, he would be enabled to make such report much more valuable. I apprehend that the chief danger would be in the matter of making appointments of commercial attaches. An appointee, alive to trade conditions and requirements, used to making investigations, required to often take the initiative in selecting trade topics for reports and calling upon his subordinates for assistance, could and would be of great service. On the other hand, one who made it a practice to rely upon a report from some active consul, that had to pass through his hands, and gain credit by incorporating it in his work, would but in time demoralize and deaden the spirit of initiative and enterprise of many of our consular officers. One of the reasons why our service has been providing so many reports is its freedom from intermediaries. Again, many of our reports are effective and lead to good results on account of being so promptly published after preparation. Often to delay publication merely for the sake of collecting a group of reports would render usele-s the object of the report. The general idea of a commercial attache seems to me to be a good one, but to need careful considera- tion in working out. Johx H. Grout. Consul. Valetta. September 28. 1904- NETHERLANDS. Opinions of the Consul- general. I have the honor to acknowledge receipt of Department circular dated August 9. 1901. inclosing copy of a circular entitled " Promo- tion of trade interests," sent to Ainerican diplomatic officers. The Department desires my views, and I beg to present the following: In the first place, I should consider it highly desirable that a closer connection of some sort be established between American diplomatic and consular officials in order that a consul may feel authorized and quite free to apply to the legation of the country in which he is lo- cated for information necessary for reports. Facts are frequently called for in reports to be made by consuls under instruction from the Department of State which can not be ascertained except through the various legations, and when the aid of legations is invoked in such cases it is sometimes cheerfully given; at others in an indifferent manner if not under silent protest, and besides, as a rule only after long delay. It is a well-known fact that no European Government departments or authorities are very anxious to furnish any important statistics or facts as to the status of the industrial and commercial interests of PROMOTION OF TRADE INTERESTS. 123 their respective countries, particularly to American inquirers, as they are very jealous of our enterprising and pushing manufacturers and fear that the aggressive commercial campaign carried on by our busi- ness men in Europe will interfere with the success of the native manu- facturers and dealers. Such information is seldom cheerfully given. It is perhaps only natural that ambassadors and ministers, for whom it is very desirable to be on a friendly footing and have nothing but pleasant relations with the various cabinet officers and chiefs of de- partments of the Governments to which they are accredited, should hesitate at times to present a long string of questions, required for some report by a consul, when he (the ambassador or minister) knows that this request will cause even momentary displeasure or annoy- ance to the department chief in question. It would, therefore, be very gratifying if means could be found whereby cooperation between the diplomatic and consular service could be established. It is, according to European ideas, hardly proper or consistant with the dignity of an ambassador or minister that he, in his official capacity, should appear to take an active inter- est in manufacturing and mercantile affairs or as a seeker of infor- mation in this direction, and for this reason it would, in my opinion, be more desirable and in every way more advantageous to our coun- try if commercial attaches were sent to the various legations. These should be active, intelligent men, with a commercial or consular training, who would understand the requirements of the American commercial and industrial interests, and know just what kind of sta- tistics, facts, and general information would be required by our busi- ness men. Their position as attaches of legations would give them the entree at the various departments of the government in the coun- tries where they were stationed, and they should cultivate the acquaint- ance and establish friendly personal relations not only with the heads of departments, but also with chiefs of bureaus, chief clerks, and other officials with whom it might be desirable to come into con- tact in order to gain any information desired for reports, etc. In this maimer much valuable information could be obtained which it would be well-nigh impossible for a minister to secure through a written official request, and, what is of great importance, it could often be obtained in a day, whereas we now often have to wait two or three months in order to get some simple question answered through the usual official channels. I should, however, feel inclined to advise against any furtheV change in the official relations of the diplomatic and consular officers than that the consul should feel free and have the right to call on his legation at any time for information required for reports which could not be obtained except through such legation, and that the commercial attache should then procure such information, if obtain- able, as speedily as possible. In other words, I would not consider it advisable or for the best interests of the service if consuls received requests for reports through the legations instead of, as now, direct from the Department of State, nor should the reports be transmitted to the Department through the legations for the purpose of having the minister correct, revise, or strike out portions which he might not approve of. Friction might easily arise. If a commercial attache was stationed at the legation, he might know as much about the contents and aims of the report of the consul as the latter — seldom 124 PROMOTION OF TRADE INTERESTS. more, provided the report was written by a consul who had seen some service, and, consequently, had some experience and knowledge of the conditions in his district; but with all due respect to our ambassadors and ministers. I would venture to submit that, while they undoubtedly are highly capable gentlemen, far superior to con- suls in knowledge of diplomacy and statecraft, they would not, as a rule, be as well posted on the intrinsic value of a report for com- mercial or industrial purposes as the average consul. Again, in case the supervision of reports was left with the com- mercial attache: While any consul, as a good disciplinarian, cheer- fully accepts and executes any order issued by the Department of State, he would not like to have some young attache dictate to him, and perhaps curtail or change a report upon which he (the consul) had expended much time, thought, and labor. It might happen, as an American minister lately expressed himself to me, that " some young attache might try to lord it over the consuls." I do not think that any good results would evolve from a change giving the legations supervision of consular reports, and friction might ensue. At the risk of being suspected of arguing for personal promotion, I would venture to offer the suggestion that the consuls-general of the various countries, or at least some of them, might be fit subjects to be considered in connection with the appointment of commercial attaches. The consuls-general are stationed at or near the capital of the country they reside in, and there could probably be no objec- tion to giving them the grade of " commercial attache " in connection with the office of consul-general. They would then have the entree at government departments and bureaus, and would know just where and how to get the information desired by them and by the consuls of their respective districts, which latter could apply direct to the commercial attache for all needed information. By following this course, the expense of stationing a commercial attache at the various legations would also, to some extent, be mini- mized, as it would probably only be necessary to allow a consul-gen- eral designated as attache an. extra clerk in his office or a moderate increase of his salary. S. Listoe. Consul- General. Rotterdam, September 9, 190 1}. Opinions of Consul at Amsterdam. I have the honor to transmit herewith the following memorandum, on the " Promotion of trade interests," in accordance with the instruc- tion of the Department contained in circular dated August, 1904, inclosing a copv of circular to the diplomatic officers, dated July 29. 1904: I assume that at the present epoch the main work of both Ameri- can diplomacy and consular effort is to further the commercial inter- ests of the United States. At an earlier time the protection of the American citizen and American citizenship was an important func- tion of the consular as well as the diplomatic officer, and the necessity of such protection led to the establishment of even many consular offices, and was invoked as an efficient argument for the presence of PROMOTION OF TRADE INTERESTS. 125 large naval forces on foreign stations. AVitli the spread, however, of the principles of western civilization over all the world, even in the less enlightened regions, the closer relations following the estab- lishment of steamship lines, cables, international business and bank- ing houses, and the extension, given latterly, to missionary effort and foreign travel; with all these changes in the aspect of things inter- national, our officers, civil and military, do not stand in loco parentis to their fellow-citizens temporarily abroad to the extent that pre- vailed in those former periods of comparative isolation; while in European countries, at least, the American denizen or transient, or those that represent American interests, much less seldom invoke the assistance of the Government's officials in maintaining their personal rights, but in case of difficulties consult local attorneys, like residents, and resort freely to the local courts, as any other citizen or subject of the country. In any discussion of this and allied topics Ave may then, I think, premise : 1. That it is conceded that all the foreign government agencies of the United States, diplomatic, consular, or naval, find their largest measure of justification and their most constant employment in fur- thering directly and indirectly the commercial interests of our country. 2. That there is prevalent very little, if any, spirit in our diplo- matic service that the consideration or adjustment of commercial questions is beneath its dignity. 3. That our diplomatic representatives, quite independently of their ability to represent our Government properly and creditably from the purely diplomatic standpoint, are generally possessed of the business capacity to aid the consular officers wisely in matters of that character. With respect to the Netherlands : The situation here is somewhat peculiar. In this country we have two diplomatic officials and seven consular officers, not including the clerk of this consulate, who is and long has been, for all practical pur- poses, deputy consul. The consulate-general at Rotterdam is twenty minutes and Amsterdam forty-five minutes from The Hague. The Hague, which is locally designated as the residence of the sovereign, if it be a capital, is so in a sense that is also quite peculiar. It is officially the seat of the royal residence. The chambers of parliament also meet there, but the distances from the homes of the members are so short that few, if any, except the The Hague representatives, reside there even during the sessions. Nor is The Hague the scientific center, and the universities are at Leyden, Utrecht^ Amsterdam, and Groningen. Add to this absence from The Hague of the chosen representatives of the people who are activtly engaged, generally speaking, in the ordinary avocations of life and I doubt if there be any capital in the world that is more com- pletely detached from the ordinary commercial life of the country than The Hague. The Dutch saying that fortunes are made in Rot- terdam, consolidated at Amsterdam, and spent at The Hague is a sufficiently accurate characterization for our purpose. Amsterdam is to the Netherlands, of which it is locally called the Hoofdstad — chief « There is no capital provided by statute, and Amsterdammers, at least, always refer to their city as the capital. 126 PROMOTION OF TRADE INTERESTS. city — what New York is to the United States, with something of the character of a capital added, while Rotterdam, lying at what is com- mercially at least the mouth of the Rhine, rivals Antwerp as a fast growing contestant of Hamburg's supremacy, long held as the pre- mier port of the continent. Under the present minister at The Hague and during his absences, while Mr. John TV r . Garrett has been acting as charge d'affairs, which period covers my service here of five j^ears, both consular officers, as I understand, certainly the incumbent of this office, have been prac- tically commercial attaches, through the practice initiated by the legation and responded to by the consulates of coordinating generally, and I believe successfully, the actual work to which we fell common heir, the diplomatic representatives calling upon us at intervals, and we seeking certain data through the legation's good offices whenever our local resources fell short. In this entire jurisdiction I think, however, instead of creating* friction it would simplify matters materially in case comprehensive inquiries of a certain character from the Department should be sent directly to the legation here to be either prepared, with the aid or co- operation of the consular officers, or finally annotated, cut down, re- shaped, or amended, or, if the minister should deem it wise, to direct either or both officers, or anyone he sees fit, to prepare the report. The class of reports that I have in mind, and in making up which time is not usually a prime consideration, are the annual reports for Com- mercial Relations, in which, as at present transmitted, there must be a vast deal of reduplication ; such inquiries as have been made on the mercantile marine in foreign countries, emigration, rivers and har- bors, trust and trade combinations in Europe, in short those elaborate, statistical, sociological, and economic inquiries of large scope, which the legation from its undoubtedly wider view point could plainly bet- ter direct. Furthermore, it may be that the legation could more efficiently and readily secure the right kind of statistical data, properly tabulated, which in a complete form is often painfully lacking in these full re- ports, however voluminous the isolated figures transmitted are. At any rate, all three agencies endeavoring at the same time, quite in- dependently of one another, to secure from the government identical data would be avoided. With respect to the larger countries, such as Brazil and Germany, for example, where the facilities at the capital are immeasurably su- perior to those of the seats of the outlying consulates and where the local consular officer is almost certain to be affected by the sentiment and interests of the State where he is located, my opinion is that the more closely such officers could be brought under the supervision of the legation without being subjected in their work to what might easily become in practice the vexatious interference of inexperienced subordinates, the more desirable it would be. Consuls-general in such countries would not generally, being consuls themselves with clearly defined districts, be able or perhaps willing to direct consular officers under their jurisdiction with the unquestioned authority of the dip- lomatic representative, either minister or full secretary of legation. I should suppose that such an officer as commercial attache would be a very useful adjunct to the legation. Such reports, for example, as those made by Mr. Gastrell, of the British service at Berlin, on the PROMOTION OF TRADE INTERESTS. 127 larger aspects of foreign trade and finance, which have been thought so valuable as to be reprinted entire by the Department of Commerce and Labor at Washington in the Monthly Summaries of Commerce and Finance, could scarcely be made by any American consular officer charged with the routine duties, day in and day out, of our offices. Further, under the recent, and as I believe wise tendency to restrict consular officers to their districts as regards the subjects, in the main, of their reports, though not the method of treating the same, consular officers, not consuls-general, would not feel at liberty to take up such exhaustive inquiries on their own initiative. My opinion is that an added official to the legation personnel; under present conditions as described, would not readily find a great deal to occupy himself with, and that he might easily, and perhaps quite unconsciously, if, after having gotten his official statistics from the central government offices at The Hague, he sought to push his in- quiries, which would then have just begun at Rotterdam and Amster- dam, become a disturbing rather than a connecting link between the legation and the consulates subordinate thereto in their common work. For example : It took the present incumbent of this office the better part of his first two years at this post to establish relations with the most effective helpers here for his purposes, and some, at least, of these gentlemen who aid so cheerfully in the voluntarily imposed task of supplying or helping to secure data take a pride in the fact that they have been singled out as authoritative persons in their branch. While, of course, they are not by any means the exclu- sive sources of supply, and information is gathered in all ways open, yet if a legation official should begin to organize here, independently, by letter, or personal intercourse, a sort of bureau of information, he might, perhaps, estrange present helpers and hamper or damage seriously the little " bureau of publicity " which has been slowly built up here. In general, however, I am prepared to believe that some carefully ihouglrUout plan can be adopted that will coordinate more perfectly the commercial work of both the diplomatic and consular agencies, without impairing at all the spirit of initiative on the part of the consular corps, and without throwing upon our diplomacy a mass of consular work which it has not the time, taste, or machinery to dispose of. Frank D. Hill, Consul. Amsterdam, September 27, 190^ RUSSIA. Opinions of the C onsvl-General. I have the honor to acknowledge receipt of the Department's circu- lar under date of the 4th instant, and to say in reply that I fully approve of the suggestion contained therein, that commercial at- taches to our embassies and legations be created to better facilitate foreign trade relations with our country. I am satisfied that through this influence, with the advice and assistance of our ambassadors and ministers, great advantage would be realized by consuls-general or consuls in the performance of their duties, especially in a city like 128 PROMOTION OF TRADE INTERESTS. St. Petersburg, where it is very difficult to get information from the various ministers upon trade matters. I would recommend, how- ever, that, instead of creating new and special officers in this capacity, existing consuls-general and consuls be made also commercial at- taches to American embassies and legations, therelr> giving all the advantages without the expense to our Government for separate members of the staffs of our embassies and legations. I believe results under this arrangement would be productive of more good, and without the chance of complications or friction arising between consular officers and commercial attaches, than if the offices of sep- arate commercial attaches were created. Ethelbert Watts, Consul-General. St. Petersburg, August 23. 190 4. Opinions of other Consular Officers. BATOOM. I have duly come into possession of the circular of the Depart- ment, dated August 4, covering copy of a circular to the American diplomatic officers in regard to a plan for the coordination and improvement of existing facilities for the collection of commercial intelligence. The contents of the circular to the diplomatic officers have had my careful attention, but in view of the fact that my con- sular appointment only dates from a few months back, I do not feel that I have had sufficient experience of the working of the system now in force to warrant my offering an opinion as to any modifica- tion thereof. Speaking from a business point of view. I should say that the scheme outlined in the circular of the Department would certainly tend to efficiency and reliability. It appears to me, however, that it would be desirable that reporting consular officers should be notified of the annotations or corrections made on their reports by the respective diplomatic officers, with a view to thoroughly elucidating the points in question and at the same time, such a course would enable the consular officers to rectify, for future guidance, any inac- curacies in the information recorded in their offices. TT. EL Stuart, Acting Vice-Consul. Batoom, September 24, 1904- WARSAW. I have the honor to reply to the Department's instructions, dated August 4, in reference to the participation of the diplomatic service in the promotion of American trade interests, as follows: Many diplomatic officers take a lively interest in the promotion of our commercial prosperity as it is, and it is through the embassy that much of the statistical data to be obtained in this country is obtainable. I feel, however, that, in Russia especially, the active participation in commercial affairs by the diplomatic officers accred- ited to its government would lessen the dignity and, perhaps, reduce materially the prestige now possessed by American embassies. PROMOTION OF TRADE INTERESTS. 129 I assume the proposed plan to mean the addition of a commercial bureau to each embassy. In Russia, from the status of the people with whom diplomatic officers are most in contact, I fail to see how the new bureau would accomplish its purpose unless departing from those associations, and this departure would, I think, lessen the rights which should be inherent in the highest diplomatic officer of our Government. Presuming the new bureau to become a fact, what can it accomplish toward the actual promotion of American commercial interests which the properly exercised functions of the consul-general, usually located in the same city, will not do? The transmission of reports via the 'embassy would, in my opinion, retard somewhat our commercial activity, especially in regard to reports which I consider to be in the emergency class — reports of opportunities existing for the Amer- ican manufacturer, of which immediate advantage must be taken, if at all. I would, of course, welcome any addition which would tend to our commercial growth abroad, but I certainly do not feel that the amount of gain commercially would compensate for the loss of position. I do not doubt that the circumstances may differ vastly in other gov- ernments, but as to Russia I feel convinced as to what is above outlined. Warsaw, August 29, 190 If. Clarence Rice Slocum, Consul. SPAI^. Report from Minister Hardy. American Legation, Madrid, October 18, 1904. In reply to your circular of July 29 last, on the " Promotion of trade interests," which I find here on my return from leave of ab- sence, I have the honor to submit the following considerations : As regards the first part of question 2, Spain has at present no commercial attaches, and relies entirely upon its consular officers for the promotion of its trade interests abroad. The existing law pro- vides for commercial attaches, and some years ago was for a time- in practical operation; but I am informed the results were very un- satisfactory, the law was allowed to lapse, and is not likely to be revived. It is alleged that the chief reason for the discontinuance of commercial attaches was that they engaged in trade. As this is not a necessary result of the system and could easily be checked by suitable regulations, I am inclined to believe that the poor results must be ascribed to other causes, such as defective organization and the desire for economy, and that the experience of Spain affords no real argument against the usefulness of the officers in question. In reply to the second part of question 2, " Would such attaches, in your judgment, be useful for the United States?" I have no hesi- tation in answering in the affirmative, provided — First. That competent men were appointed. By competent I mean IT. Doc. 245, 58-3 9 130 PROMOTION OF TRADE INTERESTS. that the} 7 should have both commercial training and commercial ex- perience, and should speak the language of the country to which they are sent. Second. That adequate provision was made for efficient work. By adequate provision I refer not only to the compensation required to secure competent men, but also to the facilities for travel which should be afforded whenever the collection of facts and data made personal observation or investigation important, and to the clerical assistance necessary in the preparation of reports. Third. That such an adjustment of duties was made between the consular officers and commercial attaches as would preserve the initiative of the former and obviate friction. In other words, a man who makes an excellent secretary of lega- tion would as a commercial attache be a useless incumbrance unless specially qualified for the work, and unless afforded proper facilities would not achieve results superior to those attained under the pres- ent system. While under the present system valuable reports on the industrial and commercial interests of their districts are made by the consuls or consuls-general, the fact that the duties of these officers rarely permit them to go outside of their districts renders their reports incomplete and local in character. I do not believe that under a suitable adjustment of duties the value of these local reports would be impaired by the creation of commercial attaches, while on the other hand these latter, having, as diplomatic officers, immediate access to the centers of official information, would be able to supply that comprehensive information on subjects of general interest and importance to which the circular refers. The general plan outlined in question 1 presents to my mind no difficulty if it contemplates the assignment of a commercial attache to the mission. It would often be embarrassing for the head of the mission to undertake to revise and supplement consular reports in answer to instructions for particular inquiries from the Depart- ment. Xo such embarrassment would arise in the case of a com- mercial attache, who has, strictly speaking, no diplomatic function; that is, whose duties are understood to relate solely to commercial affairs, and whose connection with the legation or embassy is chiefly for the purpose of securing for him free access to the ministerial departments of government specifically concerned with trade inter- ests. While the head of a mission may render valuable assistance in the promotion of the trade and commerce of the country which he represents, his influence in this respect will, in my judgment, be far greater if the diplomatic and commercial interests of the missison are, so far as he is concerned, kept distinct. Moreover, his contact with business men and his knowledge of the movements and opportunities of the business Avorld are far less inti- mate than would be those of an attache specially qualified and assigned to such work. Nor can he consistently with his other duties absent himself from the capital for investigation or consultation. Our consular service is generally recognized abroad as most effi- cient, and its efficiency has steadily increased. It labors, however, under certain disadvantages: First, the fact that it has no direct access to central sources of information, and that the indirect access supplied by the mission is slow and not always thorough: second, that its officers, for obvious reasons, are not always able to obtain the PROMOTION OF TRADE INTERESTS. 131 large view or grasp of general subjects necessary to complete and com- prehensive reports, and, third, that, although theoretically a commer- cial agent, it sometimes happens that a consular officer has had no business training or experience whatever. These defects would be remedied by the appointment of commercial attaches if, as already indicated, they were qualified to act as such. I see no practical difficulty in the way of such appointments, and have observed none in the case of the commercial attaches of Great Britain and Portugal at this post, both of whom are exceptionally efficient officials. On the contrary, I have frequently had occasion to observe the thoroughness of their work and their extreme usefulness in afford- ing information to their heads of mission as well as to their Govern- ments. Arthur S. Hardy. Opinions of Consular Officers. CAKTHAGENA. As I am unacquainted with the duties attaching to the diplomatic service, I can offer no opinion as to the feasibility of the proposals embodied in the Department's circular. Speaking on general lines, it would seem advisable to have some centrally located officer, who could obtain any desired information from official sources. Such information would probably be of a statistical character, and would most likely be obtained at the expense of some loss of time, due to the slow routine which characterizes all government offices in this coun- try. Apart from statistics, I think that local officers in close touch with importers and exporters are beter qualified than the diplomatic service to state facts and offer opinions regarding the conditions of trade in their respective localities. •* Jos. Bowron, Consul. Carthagena, September i, 190 >+. JEREZ FRONTEKA. I have the honor to state, in answer to circular dated August 4-, 1904:, that in Jerez, a city of 65,000 people, there are no records of ves- sels arrived and departed, nor any of Spanish and foreign tonnage engaged in export and import trade. The city taxes nearly every- thing that comes in, in addition to customs duty, but there is no rec- ord kept, for the reason that the business of taxing imports into the city is farmed out to private parties who pay the government a cer- tain sum for the privilege, and these parties are not willing to make public the quantity of imports nor the amount collected. Although taxes are levied on all live stock in the district, as well as on real estate and improA'ements, there is no record accessible to supply infor- mation. All these statistics can be obtained at Madrid from the gen- eral offices by our minister. It is especially true of Spain that our minister at Madrid, cultivating agreeable relations with the depart- ments, can furnish valuable statistics impossible for consuls to pro- 132 PEOMOTION OF TRADE INTERESTS. cure. Generally, a minister's more influential position, political and social, provides much greater possibilities than a consul's. M. M. Price, Commercial Agent. Jerez Froxtera, September 1 : 190Jf. MALAGA. Replying to Department circular, ''Promotion of trade interests," I would say that the scheme as outlined in the accompanying circular to the diplomatic officers appeals to me as being an excellent one for the purposes stated. During my twenty months of service, it has many times occurred to me that a coordination along the lines sug- gested would eliminate many elements of uncertainty and more fully cover all points of interest without danger that items of commercial value would be lost by reason of misunderstanding. Sweeping changes are often made in the laws and regulations of a foreign power, which even if not of commercial importance are interesting in a general way. Such changes, affecting all Spain, could, I think, be more comprehensively reported by the diplomatic officer in Madrid, for the very reason stated in the Department circu- lar, " The inability of consular officers to reach the center of official information." It may be, however, as is the case in Spain, the capi- tal city not being an exporting center, that changes of a commercial character will not come prominently to the attention of our minister ; but if closer relations were established between consular and diplo- matic officers, the danger of losing a valuable piece of information would be lessened. My official relations with our present minister in Madrid, Hon. Arthur S. Hardy, have been confined to a line of correspondence other than commercial, but I have always had ready reply and wise counsel upon such matters as I addressed to him. I would be glad to be brought more closely into contact with him, and would take pleasure in rendering him all assistance possible. Malaga, November 7, 1904. D. R. Birch, ConsuL SEVILLE. Replying to the Department's circular, " Promotion of trade inter- ests. "' I would state that with my long and varied experience in both the diplomatic and consular services I am decidedly of opinion that our commercial relations with foreign countries would be greatly benefited by means of cooperation with the diplomatic service. Commercial or industrial attaches at our embassies and legations would undoubtedly bring about surprisingly good results. Such representative ought to be thoroughly familiar with the products and manufactures of the United States, the language, customs, and requirements of the country to which he is accredited, its resources, importations by country of origin, existing commercial treaties, etc. Moreover, agencies established at capitals would have a grand oppor- PROMOTION OF TRADE INTERESTS. 133 tunity for obtaining early information, which might lead to a large sale of our products and manufactures in the construction of public works, railroads, telegraphs, new inventions, and many other ways too numerous to mention. Important trade reports, the scope of which cover a whole nation, might best be furnished to such agent, since in many instances but a portion of the queries now sent to us are applicable to all of the consular districts of the country. Undoubtedly a commercial or in- dustrial attache, by the aid of the diplomatic representatives, would be enabled to gather a great deal of important information and sta- tistics connected with the trade which it is difficult, if not impossible, for a consul to obtain. » The world's commerce is daily becoming more and more competi- tive, and if we desire to increase our own no means for doing so should be overlooked. A commercial attache should be stationed at every capital, with facilities for obtaining and disseminating infor- mation. He should have at hand statistics, newspapers, and direc- tories of the leading cities, reports from various chambers of com- merce — in fact, his office should be a bureau of information to the Government and our merchants. There is no necessity for friction between his office and the consulates since the object is to benefit the nation, and I would give my most hearty cooperation to anyone who might hold such office. We have our military and naval attaches, whose duties are to gather information for their respective Departments. Information relating to industrial and commercial affairs obtained by commercial attaches would be for the benefit of our industries and manufactures, and this object appears to me of quite as great national importance as any information that might be gathered by the two former. R. M. Bartleman, Consul. Seville, August W, 1904. SWEDEN AND NORWAY. Report from Minister Thomas. American Legation, Stockholm, August 25, 1904- I have the honor to acknowledge the receipt of circular instruction of Juh" 29 upon the " Promotion of trade interests " and to submit the following memorandum in reply thereto, premising that as I am now on the eve of departure for America upon leave of absence my reply must necessarily be brief. In regard to point 1 of the circular this question seems naturally to arise: As our consuls are preeminently commercial officers, and as their reports of recent years have been so able, thorough, and imme- diate as to be the object of imitation and emulation by other nations, are not they (our consuls) as a rule better informed upon the com- mercial and industrial subjects upon which they naturally report to the Department than are our diplomatic representatives: and if so, would the reports of our consuls be improved by being revised and annotated by our diplomats? Furthermore, would not such subor- dination of consuls to diplomatic representatives inevitably give rise 134 PROMOTION OF TKADE INTERESTS. to that friction between the two branches of the service and dampen that spirit of initiative on the part of the consular corps, the danger of which is indicated in the circular ? In reply to point 2, I beg to state that I am informed by the for- eign office that commercial and industrial attaches are unknown to the diplomatic service of Sweden and Norway. Such attaches could no doubt be useful, but is there not danger that the chief consular officers at the capitals where such attaches were stationed would regard them as in some sense duplicate consuls, and consider that if the commercial attaches were appointed specially to report upon commercial matters the consular officers were in some measure relieved from doing so, at least in so full and thorough a manner as at present ? Under existing conditions, and with our diplomatic and consular corps constituted as they are, the exports of the United States, not only of raw materials, but also of manufactured products, have in- creased of late years both in volume and in value in those magnificent proportions which form, I apprehend, a record in the commercial history of the world. William W. Thomas. Opinions of Consular Officers. BERGEN. Replying to circular, " Promotion of trade interests,'' I think there is no doubt but that in general diplomatic officers can and do render consular officers invaluable assistance in gaining commercial infor- mation; and the closer the relations the better it will be for obtain- ing trade information, and, in most cases, the more reliable and up to date will be the information given in consular reports. The sources of obtaining the best and most recent data on subjects are always open to our diplomatic officers, which is not true in even 7 case of consular officers, especially when they do not reside in the capital. In Sweden-Norway, however, our legation is situated at Stock- holm (Sweden), while the offices where recent information can be obtained concerning commercial matters are at Christiania (Norway) , so it would seem the advantage with reference to Norway will not be so great. Nearly all information not published must be obtained from the ministerial officer in charge, who is located in Christiania, and for this reason it sometimes happens that up-to-date information can not be obtained by the consul-general in Christiania, when our min- ister would require greater time and be no more reliable. It seems to me that answers to questions requiring up-to-date reports, covering the entire country of Norway, can only be obtained by the consul- general, since he is the only officer who has an opportunity to per- sonally visit these bureaus. That he will assist other consular officers in Norway so far as his time permits in obtaining information on subjects in which they are specially interested there is no doubt, and, being on the ground, he will, I think, be able to procure more promptly up-to-date information than would our minister at Stockholm. E. S. Cunningham, Consul. Bergen, September 12, 1904. PROMOTION OF TRADE INTERESTS. 135 CHRISTIANIA. I have the honor to acknowledge receipt of circular, '•Promotion of trade interests," and in answer express my views on the subject, as requested. The Christiania consulate is somewhat singularly situated, inas- much as Sweden, where our legation is located, and Norway, are both independent states, with their separate governments and laws. During the time I have held the Christiania consulate, I have never experienced any special difficulty in obtaining information on sub- jects of interest for the promotion of American trade. Commercial information is generally secured from merchants and importers with whom I have become acquainted. When called upon to furnish information regarding state institutions and other similar matter. I have always been able to secure it by applying, either by letter or verbally, to the proper department. Matters of a specific diplomatic nature, if such should come to hand, will promptly be referred to the legation at Stockholm. Hexry Bordewich. Consul- Gene red. Christiania. August £6, 1904. f GOTHENBURG. With reference to the circular of August 4, I beg to say that I think the proposition in said circular is a good one, especially for the purpose of obtaining statistics which the consuls are often called upon to furnish in official reports. I have often found it difficult to obtain the data wanted. The complete statistics of imports and exports, industries, etc., are pub- lished sc\ late that they are practically of not use, Preliminary or incomplete statistics are, to a certain extent, issued earlier; but as they are printed in the capital they could most easily and quickly be obtained by the officers stationed there. It should be remembered that the statistics cover the whole country, although the complete statistics give certain facts for each port or county. Consequently, a consul must either give the figures for the whole country, or must laboriously add together the figures for all the cities within his con- sular district, if he is requested to report upon his own district alone. Certain statistical reports from Swedish officers and corporations are never published, but simply kept in the archives in Stockholm. and a consul stationed at another place could not, without consider- able trouble and expense, obtain a statement of their contents, but expenditures for obtaining information for reports are seldom authorized. Incomplete statistics about the shipping and import and export of a city, are usually published in the local newspapers; if the consul wants these figures earlier or more in detail, he must pay local officers for preparing the statements from the written registers or records. But information which can be given without much work or writing- can usually be obtained, and has been obtained by me, free of charges through the courtesy of business men and local officers, in the city 7 where the consular officer is residing. If the proposition is carried into effect, the consular officers could, 136 PROMOTION OF TRADE INTERESTS. of course, continue to furnish information as to the names of import- ers, etc., in their respective cities, to American manufacturers and exporters asking for such information, and could also find out the opinion of merchants about American goods in the market or about to be introduced, about packing, terms, and other matters of similar character. I think, however, that a consular officer called upon to furnish cer- tain information ought to be told whether or not the same request or questions have been sent to any other consular officer within the same country. Robert S. S. Bergh, Consul. Gothenburg, August 31. 190 ^ SWITZERLAND. Report from Minister Hill. American Legation, Berne, August 16, 190 %. In reply to the Departments circular on the ;; Promotion of trade interests,*' dated July 29, 1904, 1 have the honor to make the following observations : 1. It would be entirely practicable for this legation to transmit to consular officers of the United States in this country instructions from the Department making particular inquiries, with such sug- gestions as would be likely to aid them in securing desired informa- tion. It would also be practicable to supplement their reports with such information as the legation might, in addition, be able to obtain. The " revision " of such reports would, however, seem liable to incur a double disadvantage: (1) A divided responsibility for the contents of the reports; and (2) the possibility of a misunderstanding and, perhaps, discussion, between the legation and the consulates. It would, possibly, meet entirely the needs and views of the Department if, in a separate and additional report from the legation, any errors or omissions which might be observed in the consular reports were pointed out, together with any expressions likely to give offense to the Swiss Confederation. 2. Xo such cooperation as that outlined above exists, so far as I can ascertain, between the diplomatic and consular services of Switzer- land. The Swiss Government has no commercial or industrial attaches. In answer to the question whether, in my judgment, commercial attaches connected with the diplomatic missions of the United States would be useful. I have to reply that, while in my opinion, commer- cial experts might prove exceedingly useful to the commerce of the United States, it would not be desirable to connect them with the diplomatic body. The reasons for this view are: (1) that their duties would naturally associate them more intimately with the con- sular service; (2) that no distinct advantage would be derived from their connection with the diplomatic representation which could not be otherwise obtained; and (3) that questions and incidents might easily arise through the employment of the diplomatic representation PROMOTION OF TRADE INTERESTS. 137 as a commercial agency which would tend to embarrass its operations and diminish its influence in those matters for which a diplomatic mission is specifically intended. That a diplomatic representative of the United ' States should be deeply interested in the commercial ad- vantage of his country, and that he should labor assiduously to pro- mote it are propositions too obvious to be discussed; but that he should be directly responsible for the acts of an exclusively commer- cial representative connected with his official family might prove a cause of anxiety and of inconvenience. An aggressive commercial campaign in any country is not unlikely to excite a certain measure of opposition among its people and officials. It does not detract from the desirability of conducting it to say that a diplomatic officer can be more useful as an aid in accomplishing its success if he is not too closely identified with all its operations. It appears to me, therefore, that if the Government of the United States is disposed to send commercial experts to foreign countries for the purpose of promoting the trade of the United States they could accomplish every good result if they were attached to the consulate- general rather than to the legation in Switzerland, with authorization to spend their time in visiting every part of the country. The lega- tion could in many ways promote the success of their labors without itself directing the enterprise, which would not only bring it under the critical observation of the Federal Government of this country, but might possibly create the impression that the chief purpose of the legation was not to cultivate friendly relations between the two coun- tries, but to obtain the greatest amount of gain from the Swiss people. David J. Hill. Opinions of the Consul-general. r ST. GALL. I have the honor to acknowledge the receipt of Department's cir- cular entitled " Promotion of trade interests," directed to the Ameri- can diplomatic officers, on which I am instructed to give my views. I can not see in what manner the Department would benefit by transmitting its instructions through the diplomatic officers to the consuls, instead of through the consuls-general. In the general mer- cantile policy of the Government, as it tends to the increase of our trade, I think the consul-general, who is acquainted with the condition of his district, and therefore knows which consul is best qualified to make a report, is the officer who should transmit the directions of the Department. No doubt the diplomatic officer benefits by the consular reports, but as he receives, I suppose, the daily printed consular reports, which give him the local color and business of the country to which he is accredited, he has the information in a more concrete form and with less personal work than that entailed by receiving the reports directly from the consul. The annual report made by consuls, based as it is on statistics for the whole country, would simply be a repetition of information which the diplomatic officer already has. The advancement of trade, the sale of American products in Eu- rope, or the transplanting of European industries in America, arise from personal and natural causes. Thus, our tariff laws compelled 138 PROMOTION OF TRADE INTERESTS. many German industries, and industries from other lands, to move to America and to build and operate plants of more or less magnitude. while the increased sale of American raw products and manufactured articles was due, first, to the necessity of Europe, and second, to the active canvass of the consular corps, their reports to the Department, and letters in answer to firms requesting information on hundreds of different questions. It seems to me that the introduction and sale of articles of American produce is largely a local matter, and that that local matter can best be attended to by the consular officer accredited to a particular district, that, in other words, a trained consul can do as well as a trained commercial attache. TTe of the consular corps can inform our merchants and manufac- turers on almost any question they may specify. We can go so far as to induce European merchants to make small sample orders, thus plac- ing the wedge in the door for greater orders. The subsequent steps to hold an increase of trade must be taken by the manufacturer and his agents. I can not see that the diplomatic officer could do more or has ever done more. The consular corps could be bettered by retaining men of long standing and ability, who would be well acquainted with the local conditions of trade in America, and the requirements of the people to whom they are accredited, and working in harmony under a trained consul-general they would, to my mind, represent a body of men under perfect organization, rendering the best service to their country obtainable. Any information, local or general, that it is possible for a consul to give is given gladly, at the request of any dip- lomatic officer. The Department has done me the honor to ask my views on this sub- ject, and they are that the two corps would work better as separate institutions, both reporting to the one Department. Thomas Willing Peters, Consul-General. St. Gall, August 30, 1904. Opinions of other Consular Officers. BASEL. Department circular of August 4, transmitting the circular of July 29, ** Promotion of trade interests," addressed to diplomatic offi- cers, has been duly received. I have long been convinced that something might be well under- taken for the better coordination of consular reports on trade. The reports of several of my more eminent colleagues in Europe are cer- tainly of great value: but it frequently happens that the labor and time involved in their preparation have been employed by several consuls at the same time in covering substantially the same ground. If I am not mistaken, identical statistics of exports and imports have been several times repeated in the reports from a given country. It is especially this defect in the service of collecting commercial information that I should expect to see removed by the plan sug- gested. The diplomatic officer would, of course, assign to the clif- PROMOTION OF TRADE INTERESTS. 139 ferent consuls the work which each is best fitted, 03^ his situation or aptitude, to perform in the preparation of all reports except those having reference to matters in their several districts. I had thought that this supervision might be exercised by the con- suls-general, but the greater authority of the ministers would, no doubt, give more satisfactory results in this direction, as well as in the others mentioned in the circular. Geo. Gieford, Consul. Basel, September /, 190 Jf. BERNE. I have the honor to state in answer to the circular, " Promotion of trade interests :" 1. That the difficulty upon the part of consular officers in obtaining information from the Swiss federal authorities is more fancied than real. Here in Berne they seem to distinguish between commercial and diplomatic matters, and we have no difficulty in obtaining an}' trade information we desire. We find the different federal depart- ments courteous and willing in their replies. 2. The value of a revision of a consular report by the legation would depend on whether the personnel of the legation was literary or commercial. Granted that the members of the legation possessed sound business experience and the commercial instinct, the revision would be valuable. Otherwise, a report might be improved as a literary production, but hardly improved commercially. '3. Where the consular officers are doing the work they can and should, a " commercial attache " would be like the " fifth wheel of a coach." It, would seem that we have machinery enough, and all that is necessary is to work it'. Edward Higgins, Consul, Berne, October IS, 1904. GENEVA. In reply to the circular directing an expression of views on the probable promotion of American trade interests abroad by the coop- eration to that end of diplomatic officers with consuls, under the more immediate direction of the diplomatic officers, I have the honor to report that in the particular case of this consulate I am not of opinion that instances would arise, unless possibly in such rare cases as not to create a consideration, wherein the channels of information open to the consulate are not amply sufficient for the obtaining of such information as the consulate is called upon to furnish. In the Kepublic and Canton of Geneva, the various bureaus of the Government respond readily to any requests from the consulate for information and also furnish pamphlets that may have been pre- pared on different subjects — such as adulteration of food, road build- ing, sanitary regulations, control of sale of food, public instruction, police regulations, statistics of population (floating and permanent), health statistics, general statistics, etc. — on request. It would therefore seem under special conditions prevailing here 140 PROMOTION OF TRADE INTERESTS. that the instances wherein the legation would alone be able to act effectively would have to be of a purely diplomatic nature, and such would come into the exclusive hands of the legation from the com- mencement. It might further be observed that a difference in language — and, to a corollary extent, in the habits of the people — occasions definite differences in the demands in the markets of this, the French-speak- ing section of Switzerland, from those prevailing in other parts of the country where the German language is spoken; so that informa- tion obtained at Berne, the capital, in a German-speaking section, would not always be applicable in Geneva, situated as it is in the French-speaking part of the country. As regards directions from the legation, there can be no doubt that practical benefit would be derived from the broader knowledge of a minister in touch with an entire country. Horace Lee Washington, Consul. Geneva, September 9, 190Jf. EUCERXE. I have the honor to acknowledge the receipt of the Department's circular, together with the circular to the diplomatic officers, dated July 29, 1904, in regard to a plan for the coordination and improve- ment of existing facilities for the collection of commercial intelli- gence and the promotion of American trade interests abroad. The plan outlined by the Department would operate, in my opinion, to obtain a far more comprehensive report on the subject of trade con- ditions where the report covered the entire country under considera- tion. It is frequently noticed that a group of reports made by con- sular officers are often conflicting, either through errors of fact or judgment, and are in consequence misleading and ineffective to our manufacturers and exporters. Henry H. Morgan, Consul. Lucerne, September 17, 1904- TURKEY, a Report from Minister Leishman. American Legation, Constantinople, September 27, 190Jf. I have to acknowledge the receipt of the Department's circular note of July 29, 1904, asking for certain information with a view of enlist- ing the services of the diplomatic officers abroad in the " Promotion of trade interests." The Department will always find me a cheerful and earnest sup- porter of any move toward the extension of American commerce, and I am quite of the opinion that very material assistance can be ren- « Including both Turkey in Europe and Turkey in Asia. PROMOTION OF TRADE INTERESTS. 141 dered by diplomatic officers, especially in an extraterritorial country like Turkey. 1. In answer to your inquiry as to whether it would be practicable for the minister to transmit inquiries concerning commercial matters to the several consulates, together with any suggestions that may ap- pear advantageous, and to revise the answers in the manner indicated in your circular note, I beg to say that I can see no good reason why this could not be done, provided that proper assistance be furnished the legation to enable it to conduct the business in an intelligent and proper manner. The question of avoiding friction with the consular corps is always a delicate matter, and in cases somewhat of a problem, so much so in an extraterritorial country like Turkey that all of the European powers find it desirable to place their consular officers in the Otto- man Empire under the immediate direction of the ambassador, and most of these have either a commercial attache or a special dragoman, who performs the same functions, and this man is directly attached to the embassy. The British Government pays its commercial attache here £1,000 per annum, plus traveling expenses, etc., and he also looks after com- mercial interests in several of the Balkan States. A commercial attache could not be expected to exert any direct in- fluence upon trade, but a capable man could furnish the Department, legation, and consulates with information that would assist the sev- eral Departments very materially in the prosecution of pioneer work, which is most necessary to establish American commerce on a fair and iasting footing in Turkey, which is a rich and practically a virgin field for American products. Although a beginning has been made and a fairly steady growth maintained, American trade in the Orient is practically in its in- fancy, and should be assisted, like other infant industries. American manufacturers bear an excellent reputation, and the fear of encroach- ment upon what has been heretofore the undisputed trade of Europe is undoubtedly the foundation for most of the jealousy and conse- quent intrigues on the part of our Continental neighbors. 2. As the Turks are neither a commercial nor a manufacturing race, little or no attention is paid to the development of the natural resources of the country, and nothing in the shape of a commercial or industrial attache exists. 3. Should the Government decide to put the programme described under question 1 into effect, it would be necessary to make provision for a commercial attache and an extra secretary or clerk, as the large amount of business alread}^ devolving upon the legation keeps the present force very busily employed, long hours and frequent night work being the rule rather than the exception, so much so that I have frequently been tempted to beg the Department to appoint a third secretary to assist in keeping up the current work. There is another point which I respectfully beg leave to call to the Department's attention that is of vital importance in the promotion of American trade interests in the Orient, and that is the question of transportation. English boats* can readily be chartered in America for direct shipments of full cargoes of heavy material, such as the order for 20,000 tons of rails which was secured last spring from the Ottoman Government for an American firm through the good offices 142 PBOMOTIOU OF TRADE INTERESTS. of the legation, but miscellaneous goods must be transshipped, gen- erally at Liverpool, Harve. Hamburg, or Marseilles, invoving delays and considerable extra expense, both of which operate very materially against American manufacturers. To overcome this serious obstacle 10 the advancement of American interests, a direct line of steamships should be established between the United States and Turkey carry- ing the American nag, something that is never seen in these waters except upon an occasional yacht. I am quite of the opinion that a modern line of steamers plying between Xew York and Constanti- nople would do wonders in assisting the development of American trade in the Orient and would in time become self-supporting, but for the first fifteen or twenty years, it would be necessary for the Government to grant a sufficient subsidy to warrant the undertaking. Xo better missionary work could be done here, and I request the Department to incorporate such a recommendation when making its report to Congress. John G. A. Leisiimax. Opinion* of the Consul- general. C ONST AXTIX OPLE . The vice-consul-general at Constantinople asks me to reply to the Department's circular of August 1. calling for suggestions with the view of promoting our foreign trade. He also incloses for my infor- mation, and to be forwarded to the Department, an answer to this circular from Consul Jewett, of Sivas. I fully indorse the following opinion of Consul Jewett : I think the plan a good one. provided the work of the diplomatic officers and consuls-general can be so divided and systemized as not to cause a conflict of authority or a division of responsibility that would lead to confusion and dimin- ish activity on the part of each branch of the service, and if the two can work together harmoniously, as they should. As to the legation being instructed to take an active part in further- ing our trade interests, I regard this as of the highest importance. For years I have been working for what is now outlined in the Department's circular. The obstacles that have been met Avith in this matter in Turkey have not been the fault of the consuls-general or of our ministers so much as the petty jealousies and grudges between some of the native employees in the two offices. For example, to let a dragoman from the consulate-general into the more or less sacred presence of a minister of the Porte might impair the exclusive authority and the prestige which the dragoman of the legation has so long enjoyed. Of course, the commercial matters which my office is unable to accomplish could be taken up by the legation and they have often been referred to it for that purpose, and when results were unsatisfactory it was, perhaps, through no fault of the lega- tion. The legation has been much overworked with diplomatic mat- ters and has not much time to do anything to advance American trade. Last September, our minister. Mr, Leishman. authorized a Iragoman from my office to go to the minister of commerce and to the Dalace to assist the Penns}dvania Steel Company in selling 20.000 tons of rails to the Government for the Mecca railway. A great deal - PROMOTION OF TRADE INTERESTS. 143 of time was consumed — more, probably, than the dragoman of the legation could have given to it — but the contract was obtained. The great mass of our commercial work is made up of compara- tively small items, but they are all-important, if we are to make progress in the Eastern markets, and the prompt and active coopera- tion and sympathy of the legation in such work would be of the very highest advantage. It should not be regarded as of less consequence than diplomatic work. It is not so regarded by the representatives of other countries at Constantinople, and that is the principal reason why they are able to prevent the more rapid growth of our business. So far as I can judge, the obstacles put in the way of American com- merce in Turkey are suggested by our commercial rivals, not by the Turkish officials. The Turks are not manufacturers, and are inclined to encourage commercial rivalry among other nations, unless they are influenced to do otherwise. As to the value of a commercial attache at Constantinople. I think such attache would be useful, if he were a man of business experience, with a taste for trade and interested in extending the commerce of his country. The British ambassador at Constantinople has had, I believe, no business training, but he is deeply interested in holding and extending the trade of Great Britain. To this end, nothing is beneath his notice. It may be that he and his first dragoman are doing the work which should be done by the commercial attache. I know they examined with great care the goods at our new American depot in Constantinople shortly after it was opened, and the ambas- sador has talked with me a number of times about our commercial work in Turkey, showing his entire familiarity with the subject. It is my opinion, therefore, that well-equipped commercial attaches at our embassies and legations, working in conjunction with the con- sular body, would be very useful and that inefficient ones would be useless. Until Congress shall make provision for the employment of such attaches, the consul-general should be able to do that work with reasonable success. An experienced consul-general should have his office work so organized that he can be absent from it a part of the time without detriment to the service. Such time could be profitably employed in visiting the principal consuls under his supervision and advising and cooperating with them in planting and extending American commerce. I have found such visits extremely stimulating and helpful, and the consuls have generally shown an enthusiasm and a cooperation that have given us very satisfactor}^ results. Chas. M. Dickinson, Consul- General. Binghamptox. X. Y.. October T?\ I9O4. Opinions of other Consular Officers. AUEXAJVDRETTA. A consular officer in Turkey would not be of much use to the lega- tion in the promotion of trade interests except to reply to direct ques- tions that may be sent him. Turkish statistics are so unreliable that but a general idea could be given. No census has been taken in this country for many years ; in fact, no complete census was ever taken. 144 PROMOTION OF TRADE INTERESTS. No note is taken of transshipments. Goods coming from England, reshipped at Alexandria, are credited to Egypt. The exports from this port to the United States have greatly increased the last few years. The number of invoices at this office has grown from 28 in 1900, to 79 in 1903. The rate of increase is about the same for Aleppo. But I am sorry to say that the imports from the United States have not increased, the lack of direct communication being the chief hindrance. Wm. Boss Davis, Consul. Alexaxdeetta, October 3, 190 Jf. BEIRUT. Replying to instructions contained in circular c; Promotion of trade interests," I would respectfully submit the following : In Turkey, official commercial statistics are not only unreliable, but published from two to three years after the time to which they apply. Consuls in Turkey obtain their data with regard to the industries and commerce of the country from their own observations, from individ- ual merchants, from customs officials, from port companies, from for- eign chambers of commerce, if there are any, from members of impe- rial commissions established for the purpose of constructing railways, exploiting mines, etc. Consular officers in the Ottoman dominions enjoy a quasi-diplomatic status, and have a very free hand, at least outside of Constantinople. In the latter place, our consul-general may be somewhat handicapped if the question concerns applications for franchises or bids for furnishing supplies for public undertak- ings, as such matters seem to be determined to some extent by consid- erations of international politics and of the personal interest of native officials. No doubt a clever American commercial attache of diplomatic rank accredited to Turkey, Greece, Bulgaria, Servia, and Roumania would prove exceedingly valuable to our manufacturers, exporters, and capitalists, especially along the line of keeping them informed of concessions contemplated and Government projects. He could also assist the consuls in their endeavors by furnishing them news from behind the curtains. I learn, for instance, that a concession for an electric plant in Damascus (light and street railway) has been ap- plied for ; also that the municipality of Damascus is planning a mod- ern system of waterworks. I follow these schemes through the mysteries of Damascus only to discover that there is some hitch in Constantinople concerning their realization. I naturally wish to ascertain before sending my report home what the prospects are for the approval of these plans, but in the absence of sources of informa- tion in Constantinople to which I feel free to direct myself I lose track of the matter, and probably do not hear more of it until I read in the Vienna Neue Frie Presse or Berliner Tageblatt or London Standard (there are practically no newspapers in Turkey worthy of the name) that the contracts have been given to some enterprising German. I have had similar experiences also in connection with the construction of the Damascus-Mecca Railroad. In the latter case, however, because the Pennsylvania Steel Company had a representa- tive on hand in Constantinople, who spent weeks mingling with the PROMOTION OF TRADE INTERESTS. 145 proper officials, it fell to the lot of Americans to furnish thousands of tons of rails. Only two days ago I heard from the governor- general of the province of Damascus that these rails were giving excellent satisfaction, and that the local commission, in reports to Constantinople, would so recommend them as to open up possibilities for further contracts with American manufacturers. In the Department circular, to which I now have the honor to reply, attention is most properly called to the necessity of close and active cooperation between diplomatic and consular officers in com- mercial efforts. This does not exist in Turkey in our case, as far as my experience goes. It would also seem essential that between con- sular officers and consuls-general, and between consuls mutually, there should be encouraged a stronger feeling of solidarity and more genuine fellowship. A striking instance of the gratifying results of such harmony and exchange of views and cooperation was brought to light, four or five years ago. in the establishment of direct steamship connections between Xew York and the Levant. Consul-GeneralDickinson then had all the American consuls in these parts solidly behind him, and a pull together brought about facilities which had been the subject of promiscuous consular writing for scores of years. " Even now,'* so reads a quotation from the Round Table of May 28, 1869, " there is before Congress a petition for a subsidy for a line of steamers between New York and Alexandria, which shall touch at Beirut." Mr. Peirce. Third Assistant Secretary of State, in his report upon a tour of consular inspection in Europe (1903) discusses various defects in our consular system which affect the consular morale and which naturally impair the usefulness of our consular officers in their capacities of advance scouts of commerce and of sentinels placed at foreign outposts to guard our national customs revenues. There are defects, serious and demoralizing ones, and in reporting upon the suggested appointment of commercial attaches, it will probably occur to many of our consuls that while such a departure no doubt would be highly beneficial to our foreign trade, as international competi- tion is ever growing fiercer, and new instruments should be thought of in time, it might also be worth considering whether the already existing means for the collection of commercial intelligence and for the promotion of our trade expansion could not be materially improved. Before closing this report, I would respectfully suggest that it would seem highly important, in the interest of the public service, that inspection of consulates, as recently performed by the Third Assistant Secretary of State, be developed into a regular system. G. Bie Bavndal, Consul. Beirut, October 29, 1901 SIVAS. In reply to circular of August 4, asking for the expression of opin- ion upon a proposed plan for the coordination and improvement of existing facilities for the collection of commercial intelligence and H. Doc. 245, 58-3 10 146 PROMOTION OF TRADE INTERESTS. the promotion of American trade interests abroad. I have the honor to say that I think the plan a good one, provided the work of the diplomatic officers and consuls-general can be so divided and system- atized as not to cause a conflict of authority or a division of respon- sibility that would lead to confusion and diminished activity on the part of each branch of the service, and if the two can work together harmoniously as they should. Perhaps, in this country, such work would be of less value than in countries where there is a better organ- ized and more efficient central government. Turkish official statistics are months or years out of date, confused, and inaccurate. Milo A. Jewett. Consul. Sivas, September 19, 1904. SMYRNA. In reply to circular. " Promotion of Trade Interests," I have to say: As far as obtaining reliable trade information from chiefs of departments in Turkey is concerned I am inclined to believe that the American minister at Constantinople will find it as difficult as it is for a consul to obtain similar information from the local officials to whom he is accredited. What commercial information the Turkish officials have is readily obtained, but it is not satisfactory. Records of the goods passing through the local custom-houses are kept, but not accurately. An officer whose duty it would be to attend solely to American com- mercial interests, attached either to the legation or consulate-general, would be a most useful official. He would be in a position to save much annoyance and extended correspondence to both the minister and consul-general, and being frequently in touch with the chiefs of the customs department, could possibly devise means of smoothing the paths of commerce which are now so often obstructed by minor officials. I am inclined to think that the supervision of consular trade reports and the preparation of such trade reports by the minister himself would so materially add to the labors of our diplomatic officer as to interfere with his usefulness in other directions. If, however, par- ticular points of interest requiring the minister's attention could be singled out and presented to him by a commercial agent attached to his office, the result would be highly beneficial to American commerce. Bufus W. Lane, Consul. Smyrna, Septembe?' 26, 190J h TREBIZOND. Replying to circular, " Promotion of Trade Interests,'* I have the honor to say that, basing my opinions upon my brief experience in the service as well as upon a practical experience for a number of years as promoter and manager for commercial enterprises (during which time I was brought in contact with many of our consuls), I feel that our commercial progress can be best advanced by a greater concentration of power in the hands of the consuls-general. The PROMOTION OF TRADE INTERESTS. 147 esprit de corps of the service can be best preserved in that manner. In my opinion, the revising of consular reports, Avith " annotations indicating errors of fact or judgment," should be intrusted to the consuls-general. I am not in favor of having that work assigned to the diplomatic representatives or their subordinates. The multi- farious and exacting duties which are intrusted to our diplomatic representatives render it impossible for them to do proper justice to such an important matter. In many instances their lack of experi- ence in commercial affairs, as well as the uncertainty of their tenure of office, would impede rather than further the ends in view. With the view of having the work of the consular corps effective, the consuls-general should be men of practical business experience, and their subordinates likewise. In this progressive and practical age, a theorist or inexperienced man can not hope to advance the commercial progress of the nation he represents any more than he can succeed in our marts of commerce at home. In the successful prog- ress that has been made in capturing the markets of the world, some credit is, of course, due to the energy of the consular corps, but it is evident that it by no means represents the success that would have been achieved had our consuls-general and consuls been more gener- ally men of business experience. I am also of opinion that the appointment of commercial or indus- trial attaches, under the supervision of the consuls-general and acting in unison with them in the capitals of the various nations, would be of incalculable benefit, and that such attaches would prove a valu- able auxiliary in promoting and expanding our commerce. They should be recruited from the ranks of experienced business men, and their positions made permanent. The consuls-general should be empowered, whenever in their judgment they deemed it proper, to send them into the consular districts under their jurisdiction, to report on the work of the consuls, and, wherever possible, to render them assistance in their commercial work. I do not favor placing such a functionary under the jurisdiction of the diplomatic representatives. A British commercial organization has inaugurated a system of sending young men abroad to work under the guidance of the local consuls, that organization furnishing the salar} 7 and necessary expenses of the persons referred to. Two and a half years ago, a young man was sent to this district by that organization. His mis- sion has proved a failure, and British trade has declined rather than increased during that period. This is due to the fact that he has had no practical commercial experience. A theorist can not make a favorable impression on a practical merchant. Germany and Italy have recently sent to this country commercial representatives to investigate and study the existing conditions and report on the best methods to be employed for increasing their com- merce. Their mission has been productive of beneficial results. The absence of a parcel-post system is perhaps one of the great- est barriers to our progress. Small trial orders and bulky samples can not be sent through our mails unless at great expense. Mer- chants are unwilling to purchase from illustrated catalogues, and where it was tried, in a few instances, I am sorry to say some mer- chants in America did not fulfill their obligations, and a want of confidence has thus been created. The European system of parcels post furnishes one of the greatest means for promoting their com- 148 PROMOTION OF TRADE INTERESTS. meree. I Trill illustrate one instance : A small trial order recently sent to a New York house, amounting to $3.50. met with this reply; " The mail charges on the package would amount to $5.40, and the express charges $3." The charges for a similar package from London would be about 50 cents. Our manufacturers do not give proper attention to the various suggestions made in the consular reports. This perhaps may be due to a great extent to the greatness of our home market, as well as to want of confidence in the practical knowledge of the writers. Ameri- can manufacturers, in some instances, quote impracticable terms to intending purchasers, and thereby lose an opportunity to promote trade. Among numerous cases which have come under my notice. I quote one from a firm of manufacturers in Xew York City. who. in reply to a request for prices and terms addressed to them by a repu- table dealer in this city, say : Our terms are strictly cash in advance, and care must be taken to send suffi- cient money to cover the cost of the goods, prepay the postage on j?ame. as well as the postage used in the correspondence. This arbitrary action lost a valuable customer. I am satisfied no European manufacturer would write such a letter. With confidence, unity of purpose, and a better understanding between our manufacturers and consuls, we can look forward with every hope to the time, which can not be far distant, when our nation will lead the world in commercial activity and importance. Edward J. Surltyax. Consul. Trrbizoxd. September -J. 1904. XORTH A3IERICA. CANADA. Opinions of Consuls-general. HAXEFAX. Department circular. " Promotion of trade interests." is not appli- cable to the Dominion of Canada, as there is no American ambassador or minister accredited to this country. I can see no objection on the part of consuls to submitting reports on special subjects to an ambas- sador or minister for amendments or suggestions, but I apprehend such officer would not desire to read all the reports consuls forward. I think they could add something of interest to such reports as might be submitted to them. The Canadian department of trade and commerce has " commercial agents " in Australia. Xew Zealand. South Africa. The West India Islands. Norway and Sweden. Denmark. France, and the cities of London. Manchester. Leeds, and Birmingham. England. The duties of these agents are similar to those performed by American consuls, and they receive S3.000 per annum, with an allowance for help, sta- tionery, rent, and incidentals. The Canadian Manufacturers' Association, feeling that the number of commercial agents did not cover sufficient territory, have supple- PROMOTION OF TRADE INTERESTS. 149 mented the same by the appointment of a number of " foreign agents " of their own, with similar duties, at Calcutta, Hongkong, Yokohama, Cario, Cape Town, Buenos Ayres, Valparaiso, Rio de Janeiro, Melbourne, Sydney, Paris, Copenhagen, Amsterdam, Brus- sels, St. Petersburg, Glasgow, and Belfast. These agents receive but $50 a year and nothing for incidentals, and their reports are pub- lished in Industrial Canada, a monthly publication devoted to the interests of the Canadian Manufacturers' Association. The newspapers and business men's associations are zealously en- gaged in an effort to create a public sentiment in favor of purchasing homemade goods, and many articles are marked " Made in Canada." The principal impediment in the way of increasing the trade of the United States with Canada is the preferential tariff of 30 per cent in favor of England. But for that, there can be no reasonable doubt but the United States would command a larger per cent of the Canadian foreign trade. While we are their strongest competitors in business, our social relations with the authorities and people are ami- cable and cordial, and being near neighbors, we are allied by business interests, kindred ties, close market, satisfactory goods, excellent means of transportation, and a personal acquaintance with the lead- ing firms of exporters in their respective lines. Indeed, there is scarcely a prominent firm in Canada that has not some member of his family or near relative in business in the United States. The inter- course between the two countries is constantly increasing. In fact, Canada is becoming so Americanized that it is impossible to distin- guish a large proportion of Canadians from citizens of the United States. W. R. Hollo way, Consul- General. Halifax, AuguM W, 190 J^. MONTREAL. Responding to inquiries in circular, " Promotion of trade interests," this consulate-general respectf ulty submits the following : It is thought that the most effective method of securing informa- tion on the points desired would be to submit the interrogatories to the consul-general, with directions to secure replies from the officials having knowledge to impart, the same to be returned to the Depart- ment through the consul-general, with such comment as that official may present, to be utilized by the Department, in whole or in part, as may be deemed best. It occurs to this consulate-general that the reports can be made to cover more details and be of greater utility than a more direct communication without such intervention. The foreign consular service in the Dominion of Canada has no attaches assigned to the duty of furnishing commercial reports espe- cially, such reports being so far furnished by the consuls or vice- consuls from the respective countries represented. It is not believed that an attache to the American consular service would fill the requirements suggested as to the Dominion service so well as recognized consular officers by personal investigation, or per- haps, in a special case, b}^ a special representative under the direction of the Department. By keeping in touch with the Department and the consular service within his jurisdiction, the consul-general would 150 PROMOTION OF TRADE INTERESTS. be enabled to anticipate many requirements. In some instances there might be a necessity for an appropriation for extra consular work to cover the expenses of personal visits or examinations in obtaining information while absent from the post of duty. Montreal is the commercial center of the Dominion and the metrop- olis of Canada, having a population of 300.000. or. in other words, about four times that of any other city in the Dominion. Here are located the head offices of the two principal trunk lines of Canada, the head offices of the banks, insurance companies, importers and exporters, manufacturers, etc. The location of the harbor commis- sioners, navigation of St. Lawrence River, pilotage, and canal service being here, it is assumed that more accurate and reliable facilities for securing information can be obtained at Montreal than at other points. The opportunities in the commercial area of Canada are almost limitless, and assiduous cultivation of them can but bring most favor- able results. A vast country, rapidly filling with intelligent people, up-to-date in ail that tends to successful empire, and backed by inflow- ing capital and enterprise, seems to open up the grandest possibilities to its American neighbors, who are welcomed with open arms. The increase of American interests in the establishment of foun- dries, factories, etc.. and the multiplying of products of general util- ity, is rapid, and every month needs noting as to the results of vary- ing conditions and influences upon commercial enterprise in order to point out wherein the field may be cultivated most profitably for the benefit of our producers. This is not only true as to Montreal, but all along the line, from the Atlantic to the Pacific, in the Dominion of Canada, whose purchasing power is constantly growing. It should be considered that the facilities for Americans to visit the different large cities of Canada are so superior that it is easy for them to travel through the Dominion with the object of placing their goods on the market. Canada has no consular service, but it is entitled to the services of British consuls the whole world over ; it is claimed, however, in many quarters that they are of but little service to Canada. In Canada there are nearly 500 consuls, vice-consuls, and commercial agents rep- resenting foreign countries. Out of that number 188 are in the American service, and it has been pointed out by Canadian members that the American consular service in Canada is of great benefit to the United States in studying commerce and pointing out additional openings for trade to the American people. At the fifth congress of the chambers of commerce of the British Empire, held in Montreal in August. 1903, the following resolutions were passed : That in the opinion of this congress it is urgently necessary, in the interests of the commerce of the British Empire — First. That His Majesty's Government should resolutely maintain and extend our commercial treaty rights. Second. That the consular service should be reorganized and strengthened on lines calculated to make it more effective for the promotion of the trade of the British Empire. ■ Copy of this resolution to be sent to the British colonies. Canada has commercial agents who are under the department of trade and commerce, and that department invites correspondence from Canadian exporters or importers upon all matters pertaining to PROMOTION OF TRADE INTERESTS. 151 trade and will cause special inquiries to be made by the commercial agents into any subject of general interest when so desired. It is also suggested that the Canadian commercial agents should be kept supplied with catalogues, price lists, discount rates, etc., and the names and addresses of trade representatives by Canadian exporters. The Canadian commercial agents are stationed at the following places: At Sydney, Australia, for New South Wales, Queensland, and New Zealand; at Melbourne, Australia, for Victoria, South Aus- tralia. Western Australia, and Tasmania; at Cape Town, Cape Colony, for South Africa; at Birmingham, England, for Birming- ham ; at Leeds, England, for Leeds and Hull ; at Manchester, Eng- land, for Manchester; at Bristol, England, for Bristol; at Paris, France, for Paris; at Yokohama, Japan, for Japan; at Kingston, Jamaica, for Jamaica ; at St. John, Antigua, for Antigua, Mont- serrat, and Dominica; at St. Kitts, for St. Kitts, Nevis, and Virgin Islands; at Port of Spain, Trinidad, for Trinidad and Tobago; at Christiania, Norway, for Norway, Sweden, and Denmark. The department of trade and commerce of Canada publishes weekly reports containing reports of commercial agents and trade inquiries. In addition to the foregoing, the Canadian immigration agents are directed to answer inquiries relative to trade matters, and their serv- ices are available in furthering the interests of Canadian trade. There are 5 located in England, 1 in Scotland, 2 in Ireland, 1 in Bel- gium, 1 in Wales, and 1 in France. * It will be noticed that there are no Canadian commercial agents for the United States. A. W. Edwards, Consul- General. Montreal, September 17, 190 i. OTTAWA. In response to circular of August 4, requesting an expression of my views concerning the desirability of cooperation by the diplomatic officers with the consular service in the collection of commercial intel- ligence and the promotion of trade interests abroad, 1 have the honor to state that, while I assume that in many countries such cooperation would be exceedingly valuable, it does not seem to me that in a self- governing dependency like Canada any advantage could be obtained by the proposed method. The Canadian departments have always been most courteous in granting my requests for commercial information, and I have never found any disposition on the part of Canadian officials to withhold intelligence which they would have been willing to give to diplomatic officers. I am inclined, moreover, to belieA^e that Canadian national senti- ment would be better pleased by direct requests from a consul-general resident at Ottawa for commercial information and such matters as come distinctively within consular jurisdiction, than to have such requests forwarded through so circuitous a channel as the London embassy. • John G. Foster, C onsul- General. Ottawa, August 13. 1904. 152 PROMOTION OF TRADE INTERESTS. Opinions of other Consular Officers. BRITISH COLUMBIA. VANCOUVER. I have the honor to acknowledge the receipt of the circular, " Pro- motion of trade interests." The Dominion of Canada is a self-governing colony of the British Empire, and the information required to enable our consul to make reports of the greatest value is generally to be secured from the Dominion government at Ottawa. I do not know what difficulties the American consul-general at Ottawa may meet in his endeavors to secure information, but assume that the American ambassador at London might give the consul-general most valuable assistance. The seat of government of this province is at Victoria. I do not know whether or not our consul at that port encounters obstacles in his efforts to procure information of value to the merchants and manufacturers of the United States. As this consular district is remote from both capitals, T have not sought for information that can only be derived from official sources, beyond such as the local officials can give. I have always found the local officers of both the dominion and provincial governments willing to give me some information, but in matters of much importance I am always told that the information can only be given by the chief officers at the seat of government. As you have asked me to express my views regarding the plan for the coordination and improvement of existing facilities for the col- lection of commercial intelligence, I can only say that I believe the active cooperation of the diplomatic officers with the consuls in this work would result in a very substantial increase in the value of the reports. L. Edwin Dudley. Consul. Vancouver, August 23. 190^. VICTORIA. I have the honor, referring to Department circular, " Promotion of trade interests.'' to report as follow- : It would be entirely practicable for your consul at Victoria to transmit instructions to different consular officers in western Canada, or an} r orders received from the Department of State, and to note in the dispatch transmitting same such suggestions as might seem appropriate or necessary from information secured from the pro- vincial officers who are necessarily resident in Victoria. If consular officers are directed to transmit answers to such instructions through this consulate, the most painstaking care would be taken (with per- mission and direction of the Department) to edit them so as to eliminate known errors of fact or judgment. Of course, I should understand, as suggested, that any annotations would be subject to the approval of the Department, and the original as well as edited report would be transmitted for the Department's consideration. There are no dominion officers here in Victoria who have any PROMOTION OF TRADE INTERESTS. 153 diplomatic status or any connection with the consular service of their own or any other country. Connected with the provincial gov- ernment there are in the various departments of finance, public works, mining, etc., officers who make specialties of statistics. Your consul has always cultivated friendly relations with them, and has fre- quently received advance copies of statistics, estimates, projected plans, etc., which information has as promptly as possible Deen for- warded to the Department. As to whether any additional assistance would be required at this consulate to carry out the suggestion contained in question 1, that would naturally depend upon the number of consular officers desig- nated to report to this consulate and the number of communications made. In any event, not more than one additional clerk would be necessary. I would respectfully suggest that permission be given the consul to visit portions of the province where projects of importance are being started or in progress, and important special information could be secured at first hands, and that he be allowed necessary expenses incurred in so doing. If this were insured, more reliable fresh data could frequently be obtained. Your consul at Victoria has always been ready to assist any consular officer in obtaining information from the provincial departments. As the provincial capital, the headquarters of the British Pacific squadron, and the British Columbia sealing fleet, Victoria must necessarily continue to be of the first importance in regard to the varied interests of Western Canada. Abraham E. Smith, Consul. Victoria, October ,26, 1904. YUKON REGION. Replying to circular of August 4, I desire to signify my apprecia- tion of the method proposed by the Department for the promotion of American trade interests abroad, and to facilitate the efforts of con- sular officers to keep American manufacturers and exporters fully advised of all matters likely to aid them in increasing American commerce. Our embassies and legations, having at their disposal all Govern- ment publications and reports and all trade and commercial journals, besides being likely to see the trade notes appearing in the press of the capitals, are certainly in a position to be fully informed on all ^natters* touching upon manufactures and commerce, and I judge, therefore, that should consular reports, whether emanating from consuls directly or under instructions from the Department, be sent through our diplomatic officers, they could make most valuable sug- gestions for a supplementary report from the consul or greatly add to the value of the original one by giving, from Department publi- cations in their possession, the result of Government investigation of the same subject. During the time I have been stationed in Canada, I have always received every assistance from the authorities in my endeavor to obtain trade information, and the several ministries have been good 154 PROMOTION OF TRADE INTERESTS. enough to send me, upon my application, all reports, publications, and maps issued by their departments. L/eo Bergholz, Consul. Dawson, Yukon Territory, September 16, 1904- MW BRUNSWICK. MONCTON. Replying to circular of the 4th instant, I beg to say that I have always received every courtesy and assistance in any applications I have made to Canadian officials in reference to matters of trade or industry, and have tried, from time to time, to report such as seemed to me might be of use to business men of the United States. At the same time, I have had a considerable number of inquiries from United States manufacturers and others in reference to matters of which I had no knowledge or means of getting any, by reason of the fact that no business in the particular line about which inquiries were made was carried on in or near this consular district. On the other hand, when circumstances have arisen in this country which it seemed might affect United States business interests, I have fre- quently hesitated about reporting them lest other consuls in closer touch with the circumstances should have done so. There is no doubt, I think, that, with a properly organized arrange- ment, a larger business could be done between this country and the United States, and that business would be helped by the appointment of a " commercial attache,' 5 or by the establishment of a commecial information bureau for each of the provinces of the Dominion, to whom the different consuls could report matters of interest arising in their several districts. This bureau could then annotate and con- dense these reports, and forward such portions thereof as were deemed of importance in consolidated form to the Department. Then, too, if the central bureau or agency was established, as sug- gested, all general inquiries could be sent there, and the agent-general could get required information from such of the subordinate officials as might be in possession of it, and this he could supplement with his general knowledge of the Province and the reports from time to time received by him. Gustave Eeutelspacher, Commercial Agent. Moxctox. Xew Brunswick, August 16, 1904. ST. JOHN. In reply to your circular of August 4, asking for an expression of views of consuls upon the subject of promotion of trade interests in their districts, I have the honor to state that, inasmuch as there are no diplomatic officers of the United States located in Canada, there could be no conference with such ; but there might be, with profit, a conference of the different consular officers in the Maritime prov- inces to formulate plans for the promotion of our trade interests in that section of Canada. The trade statistics of Canada are for- PROMOTION OF TRADE INTERESTS. 155 warded to the office of the commissioner of customs at Ottawa (and it is impossible to secure such from the different collectors of cus- toms in these Provinces), and can be obtained only through the consul-general at the Dominion capital. We are, therefore, restricted in securing such valuable information within time to be of any im- mediate practical benefit to the manufacturers of the United States. If the Department considers the suggestions herein practicable and the consul-general at Halifax were instructed to call such a confer- ence there would probably be considerable benefit derived therefrom. Ira B. Myers, Consul. St. John, New Brunswick, September 19, 1904. ST. STEPHEN. In reply to Department circular of August 4, I have the honor to inform }^ou that I regret not to be able to offer suggestions for the improvement of existing facilities for obtaining commercial intelli- gence or the promotion of American trade in this consular district. While it is true that we depend upon the heads of departments for much of our information, this office is in such good standing with the officials here that no difficulty has been experienced in obtaining statistics wanted. Although aware that this source of information might be closed to us at any time, the possibility is very remote. Should it occur, however, I have not the slightest doubt but a way would be found to get possession of all that we should desire. At the present time, I confers my inability to suggest any other plan. The situation of this consulate, its whole length bordering on the United States, and the fact that the business interests here are in such close touch with American manufacturers and producers and are satisfied with trade conditions as to credits, quality of goods, packing, etc., make it difficult to conceive of any way to materially increase American trade by other means than those now in force. Charles A. McCullough, Consul. St. Stephen, New Brunswick, August 31, 1904- NOVA SCOTIA. SYDNEY. Iii compliance with circular of August 1, I have the honor to report as follows : It would greatly facilitate the work of this consulate if instruc- tions were received specifying any particular business or class of manufactures it was desired to obtain information in regard, to, with suggestions from the consul-general as to the mode to be used in pro- curing such in formation as seems best adapted to each particular consulate under his jurisdiction. Heretofore this consulate has maintained the most cordial relations with the merchants engaged in all classes of trade, and has, as the large catalogues of manufacturers, wholesale dealers, and commission 156 PROMOTION OF TRADE INTERESTS. brokers have been received, laid them before the merchants for their inspection and consideration, and informed merchants and others interested that such catalogues were at their dispo'sal at any time for consultation in the office of the consulate. The same cordial relations have also been maintained with the offiecers of the coal, iron, and steel companies located in this consulate jurisdiction, and, on application being made, they have kindly fur- nished statistical information for use in the report on " Commerce and industries " submitted by me each year. The same courtesy has also been extended by the commissioner of customs at Ottawa in regard to the dutiable and free imports and exports into the ports of Sydney and North Sydney (they forming separate customs collection districts) , for each fiscal year, by specified classes of goods from the United States, Great Britain, and other countries, this consulate reimbursing the gentleman detailed by the commissioner for the labor involved in making up the statistics from the files at Ottawa. As is well known to the Department of State, the section of Nova Scotia in which this consulate and its agencies are located is not largely populated, except in and around the coal mining districts, and at Sydney, where the Dominion Iron and Steel Company is located. Neither is it a manufacturing center for any class of goods used generally by the inhabitants. I am pleased to state, however, that in the last several years there has been quite a large increase in the quantity of American goods brought into this immediate vicinity, owing in a measure, I think, to the merchants having had brought to their attention through this consulate, as well as by their receiving direct from the manufacturers and others, catalogues and prices of various classes of American-made goods. The fact remains, on the other hand, that this section of Canada has a large corps of ener- getic commercial salesmen constantly on the ground, representing British manufacturers in all classes of goods; also carrying large lines of samples, and with the differential tariff in favor of Great Britain, and with long credits, thev control a large portion of the trade and are close competitors with Canadian manufacturers, mak- ing it exceedingly difficult for American goods to be placed on this market, unless they possess great superiority in style, quality, and price. This consulate would warmly welcome any suggestions or instruc- tions whereby it might more effectively promote the interests of American manufacturers for the introduction of their goods or wares into this market. George X. West, Consul. Sydney. Nova Scotia, August 16, 1904. WINDSOR. In reply to the circular " Promotion of trade interests," I beg leave to say that, as there are no American diplomatic officers in Canada, there could be no conference of American consuls with them as sug- gested in the circular. But there are over forty odd American con- suls in Canada, and. barring a few French consulates, the districts are PROMOTION OF TRADE INTERESTS. 157 all English speaking, with like tastes, culture, and habits as the American people — indeed, more like Americans than the English — and yet these consuls are all strangers to each other, seldom meet, and scarcely ever write to one another, except briefly on official business. Nothing would be more valuable to the consular service, nothing- would do more to promote trade interests with Canada, than the per- mission to the American consuls in Canada to form associations and meetings for the discussion of consular business pertaining to their respective consulates. Such associations might be authorized, with simple rules and regulations, under the jurisdiction of a consul- general, perhaps, and thus obtain for the Department the combined judgment of the whole body of consuls instead of the conflicting- reports and separate findings of individual consuls. The diplomatic circular inclosed with the instruction of August 1 well states an important truth when it says " that the machinery for collecting information as to business conditions in foreign countries should be made as efficient and automatic as the means will allow.* 7 This valuable suggestion, as well as many others contained in the cir- cular, could be better considered by a meeting or convention of Amer- ican consuls in Canada than by each consul in his office. Even a con- ference of two consuls alone on Department questions would pay both the consuls and the Department. At least, the Department might allow the consuls of the maritime provinces to effect an organization or association, under the direction and control of the consul-general at Halifax, for the discussion of consular duties, laws, and regula- tions and all matters pertinent to the office of consul. f Joseph T. Hoke, Consul. Windsor, Nova Scotia, September 22, 190J+. ONTARIO. CORNWALL. I have the honor to acknowledge the receipt of circular " Promo- tion of trade interests." In ansAver to question No. 1, I would state that it would be practicable to transmit to consular officers instruc- tions from the Department of State. These reports could be revised and suggestions made as to eliminating errors, etc. As to question No. 2, there is perfect harmony with the Dominion officials in this district, and they cheerfully give information. As to question 3. there is no need of assistance at present. John E. Hamilton, Commercial Agent. Cornwall, Ontario, October 17, WOJf. LONDON. Replying to Department circular of date August 4, relative to pro- motion of trade interests, in which an expression of views is solicited from the consular officers, I beg to state that I am unable to see wherein our diplomatic representative in Great Britain would be of 1 58 PROMOTION OF TRADE INTERESTS. much service in promoting our trade interests with Canada. I can readily see where he might be of great service in the mother country, but the independence of the British colonies and their trade relations with the mother country arising from the preferential tariff rather isolate them from any direct influence which our diplomatic repre- sentative might have with their ministerial departments. Besides, our nearness to the Dominion and our friendly intercourse with its people, resulting in the wide dissemination of trade intelligence, leave but a small field in which to exert any extraordinary influence in behalf of further trade extension. True, we are now deprived of what was formerly accorded us, viz, the latest statistical information from local customs officers as to exports and imports, but this can be obtained, I understand, at the capital upon application to the department of customs. With this exception, consular officers are accorded the fullest information nec- essary to enable them to set forth clearly and fully the trade condi- tions of their respective consulates. Were I allowed to make a suggestion, I would say that a commerical agent stationed at the capital might be of great benefit to our manu- facturers and exporters, acting as an aid to the consul-general, with power to call for such special information from consular officers as in his opinion might be important, from time to time, to our interests. Henry S. Culver, Consul. London, -Ontario, September 16, 1904. ORILLIA. Replying to circular, " Promotion of trade interests," on which an expression of A r iews is requested, the following is respectfully sub- mitted : Undoubtedly the officers of the diplomatic service would be able to procure reliable and authentic official information in less time than the average consular officer in most instances. It would, in my judg- ment, be a distinct advantage to the consular service to have the active cooperation of the diplomatic corps. A consul being unable to pro- cure authentic information through his own efforts, could then rely upon the assistance of officials better able to procure information first hand. In Canada, from my own experience, this is not so applicable. Information sought has been readily obtained through the courtesy of local officials or the cooperation of the consul-general at Ottawa. The establishment of direct cooperative communication between the diplomatic corps and the members of the consular service would, however, tend to remove any difficulties and uncertainties which might occur in procuring official information and prevent the appear- ance of any misstatements of any considerable consequence. My personal experience has been most gratifying with departments and officials. Information sought in most instances has been readily accessible, and in no instance have I met with anything but consider- ate and courteous treatment. So that in Canada, through the me- dium of personal effort or the assistance of the consul-general, reli- able information is easily obtainable. Generally speaking, the sug- PROMOTION OF TRADE INTERESTS. 159 gestions outlined in the circular would in my opinion add to the efficiency of the service. E. A. Wakefield, Consul. Orillia. Ontario, September 1. 1904. TORONTO. In reply to circular, " Promotion of trade interests," I have to state that while. the suggestions contained in the circular have reference directly only to countries where both diplomatic and consular officers are stationed, and are not applicable to the Dominion of Canada, where the consular service alone is represented, my judgment is that the cooperation of diplomatic officers, along the lines indicated in the circular, might be of material assistance to consular officers, particu- larly in the matter of statistical and othep information, which, in many cases, can best be obtained from high official sources to which the average consul does not readily have access. The transmission of inquiries through diplomatic officers to con- sular officers, and, in turn, a like transmission of their replies, would unquestionably serve the purpose of imparting information, each to the other, and, in my opinion, would result in a cooperation that would greatly facilitate the means of obtaining information valuable to the importer and exporter, and in consequence prove of distinct benefit to American trade and commerce. Toronto, Ontario, October 14, 1904. E. N. GuNSAULus, Consul. QUEBEC. STAIsBRIDGE. With reference to the circular, " Promotion of trade interests," I understand the object to be the combining of the diplomatic and con- sular services into one alert and intelligent body, studying the world's commerce and looking for commercial opportunities in each country, and reporting the information collected to the Department of State for the benefit of our people. It is my opinion that the aid of the dip- lomatic corps would prove a powerful factor in efforts to extend our commerce. With a combination such as that proposed, I can see no reason why our manufacturers and exporters should not more than double their trade abroad. Diplomatic cooperation in Canada, however, is not required. Such information as the consuls desire for use in their reports can always be secured directly from the departments at Ottawa without the inter- vention of a diplomatic officer or the consul-general. The Canadian officials are ever ready and willing to grant the least request. Closer relations should exist between the consular officers of Canada with the consuls-general at Montreal, Halifax, and Ottawa, for the promo- tion of trade between the two countries, and it might be advisable for the consuls-general to make suggestions to the consular officers sub- ordinate to them and revise their reports. The consuls-general are 160 PROMOTION OF TRADE INTERESTS. in a better position to cooperate with us than our ambassador or his secretaries at London. Being located in this country and stationed in the most important cities, they can, as a rule, detect the deficiences or mistakes in our reports more readily than officials at a distance. According to their judgment, they could also eliminate such passages in our reports as might give offense or cause embarrassment between the two countries. There is at present no cooperation between the British diplomatic corps and the Canadian commercial agents abroad. Canada's com- mercial agents have no status in international law, and are therefore ignored by foreign States. Their number, it is claimed, is too small ; their reports are not sufficiently circulated, and in some cases, their qualifications are not adequate. The Canadians assert that the con- sular service should precede the granting of the right of treaty making, a subject which has been discussed recently. Here is what is proposed for the extension of Canadian foreign trade: First, That an official paper be published setting forth tariff changes, movements in foreign markets, foreign commercial legislation, port and harbor regulations, etc. Second. That an office be established in Ottawa where tariffs, circulars, items of commerce, news, etc., can be referred to b}^ the public, who may inspect and copy. Third. That changes in foreign tariffs be made known more rapidly than heretofore and that projected changes be promptly reported. Fourth. That trade reports appear more frequently and regularly and that copies of them be sent to trade journals. Fifth. That consular reports give the fullest details of industrial conditions. Sixth. That samples of goods be sent home with the reports. Seventh. That consuls report on what other means could be adopted to push their country's trade. Eighth. That consuls be allowed to pay for early statistical informa- tion. Ninth. That sample and specimen rooms be attached to the principal consulates abroad where various classes of Canadian goods ma}^ be kept in view. Tenth. That commercial museums of foreign manufactured goods and products be established in well-chosen centers in Canada, and that exhibitions of Canadian goods be opened at foreign ports or sent in vessels from port to port. Eleventh. That consular officers abroad use their best efforts to place British subjects on a not less favorable footing than foreigners in search of conces- sions or other commercial enterprises and recommmend trustworthy lawyers and accountants. Twelfth. That any such enterprise be reported at once. Thirteenth. That consuls assist in recovering debts. Fourteenth. That consuls report on the solvency of foreign business houses and how far credit may be safely given. Fifteenth. That His Majesty's consuls act as quasi-public prosecutors in cases of trade infringments. Sixteenth. That consuls be chosen from among men possessing commercial qualifications and technical knowledge. Seventeenth. That consuls home on leave shall visit centers of Canadian manufacture and acquire technical knowledge. Eighteenth. That the names and addresses of the consuls and their office hours be made public. Nineteeenth. That Canadian commer- cial attaches be appointed to embassies and legations. Twentieth. That the trade and commerce department be assisted by a council to be chosen from the chamber of commerce. I have suggested, for reasons already mentioned, the employment of the consuls-general to cooperate with consuls in making reports to PROMOTION OF TRADE INTERESTS. 161 the Department in lieu of the diplomatic officers in London ; further, that consular officers be allowed to pay for early statistical informa- tion, and, should commercial attaches be employed, that they be placed in large cities and be in charge of sample and specimen rooms, where various classes of American goods may be put on view. Felix S. S. Johnson, Commercial Agent. Stanbridge, Quebec, September 26, 1904- THREE RIVERS. In reply to circular of August 4, regarding plan for the advance- ment of American trade interests, I would say that, in view of the fact that the imports from America into Canada are constantly on the in- crease, and that the contemplated railway construction, on a large scale, is sure to create a demand for manufactured articles, especially those made of iron and steel, an organized system would do much to advance the trade interests of America. I think that, for this country, if a bureau, under the direction of the counsul-general, was equipped at Ottawa for such a purpose, it could there secure information that might be required along these lines. The other consuls throughout the Dominion Would cooperate with the consul-general. The importations into this district come through the custom-house located here, and as ( our relations with the Government officials located in Three Rivers are friendly, we could at any time obtain information or statistics that might be required for trade purposes. As the population and commercial needs of Canada are increasing rapidly, some organized plan should be adopted at once. W. W. Braman, Vice Consul. Three "Rivers, Quebec, September 10, 1904. MEXICO. Report from Ambassador Clayton. American Embassy, City of Mexico, September 2, 1904. I have the honor to acknowledge the receipt of the Department's circular instruction of July 29 last, relative to the promotion of trade interests. Before attempting to answer the three interrogatories therein pro- pounded, I shall avail myself of the invitation of the Department to offer any suggestions that may seem to further the coordination and improvement of existing facilities for the collection of commercial intelligence. The views that I am about to express originate from my standpoint here, and are based upon an experience of over seven years in this Republic. I believe that diplomatic representatives should be required by the Department to make all consistent and efficient efforts with the Government to which they are accredited, for the procurement of H. Doc. 245, 58-3 11 162 PROMOTION OF TRADE INTERESTS. all proper information of a commercial character which consular officers may, from time to time, request: that, where the diplomatic representative entertains doubts as to the propriety of such requests, it should then be his duty in each case to report the facts to the De- partment for instruction. Upon the other hand, I believe that consular officers should be required, upon the request of the diplomatic representative, to furnish him, promptly and efficiently, all information concerning local occur- rences which might be the subject of diplomatic correspondence with the Government to which he is accredited; and, that where occur- rences come to the knowledge of consular officers which, in their judgment, might require diplomatic action, they should be required, upon their own initiative, to report the facts connected therewith to such representative. With the exception of the cooperation thus outlined, I believe that each branch of the service should remain absolutely separate and independent of the other. Upon the principle that " too many cooks spoil the broth " and the consideration that the efficiency of public officers is greatly stimulated by their desire to secure the approbation of their Government and the commendation of their countrymen, I believe that the officers of each branch of the service should be entitled to full credit for meritorious work without it being divided in the least with the other branch. Hence, I doubt the propriety of the proposed diplomatic revision referred to in interrogatory No. 1. It is my opinion that the consular service in Mexico would be much improved if all of the consular officers were under the general supervi- sion of one consular officer, designated as consul-general, and that to him should be delegated the revisory powers referred to in the afore- said interrogatory. For some reason unknown to me, but doubtless well understood, by the Department, we have in Mexico two consuls- general. To the consul-general at Monterey is given supervisory jurisdiction over a number of consulates in the northern part of the Eepublic, while to the consul-general at Mexico no such supervisory jurisdiction is given over the remaining consulates, that jurisdic- tion being given to the diplomatic representatives. I respectfully submit for the consideration of the Department the propriety of relieving the diplomatic representative of this jurisdiction and invest- ing it in the consul-general at the City of Mexico, restricting the general supervision of the diplomatic representative to the two consuls-general. In answer to interrogatory No. 1, I have the honor to say that, in my judgment, it would be practicable for the diplomatic representa- tive here to perform the additional duties referred to therein, but it would considerably delay the particular work required of the con- sular officers, and if well performed, would entail upon this embassy much additional labor. In answer to interrogatory No. 2, I have the honor to say that I have carefully examined the diplomatic and consular regulations of Mexico, and have extracted such provisions as govern the rela- tions existing between the two branches of the service, either by law or by departmental regulations. A copy and translation of these provisions is inclosed herewith, from which it will be seen that in the Mexican diplomatic and consular service there is no such coopera- tion as that outlined in interrogatory No. 1, and that the Mexican PBOMOTION OF TRADE INTERESTS. 163 Government has no commercial or industrial attaches. In my opin- ion, for the reasons expressed in the fifth paragraph of this dispatch, such attaches would not add to the efficiency of the consular service. In answer to interrogatory No. 3, 1 have the honor to say that, per- haps with the exception of a first-class clerk, with a salary of not less than $1,200 per annum, the programme described in interrogatory No. 1 could be carried into effect. Powell Clayton. [ Translations from the Guia Diplomatica y Consular of Mexico for 1902.] Article 17 (from the organic law of the Mexican diplomatic corps, dated June 3, 1896, p. 10: Chiefs of missions may order, whenever they consider it expe- dient, that consulates within their jurisdiction be visited by one of the secre- taries of legation or by the consul-general, making a report of the result to the depatment of foreign affairs. ******* Article 47 (of the reglementary law of the Mexican diplomatic corps, dated May 7, 1888, p. 22; : Whenever there is not a consul-general in the country where a legation is established and the business of the office permits, one of the secretaries will take charge of the dispatch of matters of commercial character. ******** Paragraph II (of the law relating to the establishment of consular agencies, dated February 12, 1S34, p. 71) : In places where there is only a consul-general, because of purely commercial relations that may exist between the nation to which such an officer is apbinted and the United Mexican States, that function- ary shall attend to such diplomatic business with which the Government may see fit to charge him. ******* Article 2 (of the regulations of the consular service, dated September 16, 1871, p. 77; ) : The consular corps in a country where there is a Mexican legation shall be subordinate to the same, without this preventing the agents and employees of inferior rank from recognizing the consul-general, where there is one, as their immediate chief. ******* Article 7 fof the same law, p. 77; : In cases of urgent necessity, in default or inability of a consular agent, the chief of the Mexican legation, or in the absence of the latter, the consul-general of the Republic to the country where the aforesaid case may have occurred, shall appoint, with temporary character, an agent or employee of the proper rank, for the place where his services are required, reporting the appointment, as well as the causes for the same, to the department of foreign affairs, at the first opportunity, in order that the Govern- ment may take proper action. Opinions of Consuls- general. CITY OF MEXICO. In answer to circular, " Promotion of trade interests," I write with diffidence owing to my comparatively brief experience in the service. It seems clear, however, that a slight modification in the system now in vogue with us would insure more satisfactory reports on all subjects of general interest and importance. At present, in Mexico for exam- ple, owing to the lack of general supervision, there must be unneces- sary duplication of work and lack of uniformity in results. Trans- mission of particular inquiries on subjects of general importance either through the ambassador or the consuls-general who could make suggestions, revise reports, and indicate errors of fact or judgment before forwarding reports to Washington would, without doubt, improve the service. But should this be done through the diplomatic 164 PROMOTION OF TRADE INTERESTS. officer or the consuls-general? The latter are primarily commercial agents. Will the} 7 not be more successful in the collection of commer- cial and industrial data if their responsibility as commercial agents is not divided with diplomatic officers? Of course, at this post, the consul-general is not now charged with any supervisory powers. His jurisdiction does not extend beyond his immediate district. He is merely a local officer. Nevertheless, it has been customary for consuls- general at Mexico City to issue reports on matters of general interest. Such reports are made evidently with the approval of the Depart- ment. That their value would be greatly enhanced if the consul- general had supervisory power can not be questioned. But it is stated that there is an objection to this view owing to the limitations upon the consular service in its lack of diplomatic status in obtaining information at first hand. This objection might be obviated generally, as it is now practically at this post, through the hearty cooperation of our diplomatic agents. A simple understand- ing that diplomatic representatives will render such assistance as may be necessaiy in procuring information is all that is requisite. It seems to me that the functions of our diplomatic officers and of our consuls-general are now quite distinct and that it would not be wise to obliterate this distinction. It should be the ambition of our consuls-general to make a record in the collection of commercial and industrial data. Such positions should be filled either by those with special qualifications or by those whose work in subordinate positions has given evidence of peculiar fitness. Of course, our diplomatic positions are filled generally by men of high character and unusual abilities, and if such men personally had time to make suggestions touching the preparation of consular reports and to revise such reports, the benefits of the service would be great. But the demands upon them in their representative capacity are such that this work would necessarily be turned over almost entirely to subordinates specially appointed for the purpose at much lower sala- ries than are now paid our consuls-general, and presumably to men of less business capacity. Under such conditions, it seems to me that it could be done to better advantage through the consuls-general. It should be distinctly understood, however, to prevent the possibility of friction, that consular officers are subordinate to diplomatic officers, and that they should exercise great care to insert nothing in their reports likely to give offense or to cause embarrassment to diplomatic officers. Furthermore, they should be encouraged to consult diplo- matic officers and to follow their advice in reports which, through broad generalizations, might endanger legitimate business enterprise. It may be that my ideas on this subject are colored largely by con- ditions in Mexico. Here it would be highly satisfactory if the consuls-general could work as suggested under the supervision of the ambassador, who gives us the heartiest cooperation and whose advice we are always glad to follow. The additional work at this post could be done if we had a stenog- rapher, so that it would no longer be necessary, as at present, for the consul-general to spend so much of his time either in writing at long hand or in dictating to a machine. James Russell Parsons, Jr., Consul- General, City of Mexico, September #, 190J±. PROMOTION OF TRADE INTERESTS. ' 165 MONTEREY. Acknowledging receipt of circular dated August 4, I have the honor to state : I see no reason why the diplomatic service could not be utilized with great advantage in furnishing the Department such a class of information as is found to be impossible for consular officers to obtain, and I believe that such information would be of great benefit in the extension of our commerce in foreign countries. I conclude that the Department wishes a candid expression from consular offi- cers on this subject, and I will state frankly that I do not believe that it would be to the advantage of the service to submit consular reports ', to the diplomatic officers for inspection or revision. While I have the highest respect for the diplomatic service of our Government, the officers of that service have their time largely taken up with another class of business, and it is impossible for them to become as well informed concerning commerce as the consular service, since the con- sular service devotes a large amount of its time and attention to the subject of the extension of our commerce in foreign lands. I do, however, believe that our diplomatic officers are in position to obtain a certain class of information which might be very difficult, or even impossible, for consuls to obtain. Our consular service is composed of an intelligent lot of Americans, capable of performing the work for which they are commissioned, and I am decidedly opposed to the idea of submitting their reports to the diplomatic service for revision or correction. As to the question of the appointment of commercial attaches, I see no necessity whatever for such a class of officers, as I am fully con- vinced that our diplomatic and consular service is fully competent to look after the interests of our Government and people in every particular which may be required. » Philip C. Hanna, Consul- General. Monterey, August 22, 1904. Opinions of other Consular Officers. CIUDAl) JUAREZ. In accordance with circular instruction of August 4, I have the honor to submit my opinion, as follows : It has often occurred to me that a central bureau, or kind of clear- ing house, for commercial news and information in the City of Mexico would be useful. Through such an institution, consuls would be greatty facilitated in their work, and by cooperation of the bureau and the consular corps, reports and commercial information could be so arranged and digested as to prevent duplication — so concentrated and ordered as to prove more valuable and satisfactory to the com- mercial factors in the United States. When a particular manufacturer in the United States makes effort to enlarge his market and extend the demand for his product, he does not confine himself to a consular district, but seeks the opportunity embraced in the entire Republic of Mexico. In order, however, to procure the preliminary information that would prove useful to him 166 * PROMOTION OF TRADE INTERESTS. he addresses letters (frequently circulars) to all the consuls. Not all the letters, perhaps, are answered; and if they are, conditions are so different in the various districts that the replies do not prove alto- gether satisfactory, and leave the manufacturer in more or less con- fusion as to the extent of his opportunity and the best method of procedure. A concise, well-arranged ansAver, covering all points of information desired, and taking in the entire Republic, would prove more valuable. I am of the opinion that there should be a commercial' attache in Mexico City, under the supervision of the embassy, and that, in a general way, and more especially in the propagation of information, there should be strict cooperation between that officer and the con- sular corps. Such an arrangement should not necessarily interfere with the spirit of initiative in the consuls. In the preparation of reports applicable to matters local to their districts, assistance could be rendered the consuls by the attache, and the consuls could cooperate with the attache in supplying material for answers' to 'inquiries and the preparation of special reports. While a spirit of reciprocity would be necessary, I see no reason why it should not exist. The commercial attache of the embassy should be well paid, and should possess marked talent for investigation and the preparation of reports. His vocation would be to investigate, digest, arrange, and put into comprehensive form all kinds of matter of a commercial and industrial character. He should be able to see things as they are, and should know how to present them to the American factor in the man- ner best calculated to afford him the proper idea of his opportunities. He should be allowed a stenographer and traveling expenses, and should, when necessary, visit any part of the Republic in quest of accurate information and in the preparation of special reports. In the exercise of his official duties, he could protect American investors, who are attracted by the extravagant prospectuses of ;i fake " rubber- culture and mining companies and other unsubstantial concerns. Since a great deal of American capital is entering Mexico in quest of every kind of investment, it would be an important part of the attache's duty to point out opportunities, and, by investigation and report, to protect the investor from fraud and misrepresentation, for the development of Mexican resources by American capital increases the volume of American commerce. Statistics of the importation of a given object into a particular consular district can not satisfy the American manufacturer fully, nor can they afford him the complete and accurate information he desires before seeking a new market. The attache at the embassy could secure at once, no doubt, statistical information covering impor- tation for the entire Republic. By acldressiug the consuls, he could obtain information as to the possibility of increasing the demand for the commodity in their particular districts, and from these sources could prepare and supply to the inquirer information accurate and complete, concise, and comprehending the entire country. The in- quirer would thus receive, .in one report, a full view of the field before him. its opportunities and its limitations. I have before me a letter of inquiry from the United States Export Association regarding the introduction of typewriters into Mexico. These queries were, no doubt, sent to all the consuls in Mexico. It appears to me that a commercial attache could prepare an answer that PROMOTION OF TRADE INTERESTS. 167 would be more satisfactory than a miscellaneous collection of replies from consuls. The attache could ascertain the number of typewriters imported into Mexico, their quality, price, etc. As typewriters would be distributed mainly through agencies established in Mexico City, he could ascertain the quality of machine for which there is the great- est demand. With the aid of the consuls, if it were necessary, he could furnish the names of probable agents in the various cities. On the whole, the attache's report would cover the typewriter market in all Mexico, and would, I believe, prove more valuable than a collec- tion of answers from the consuls, who would not have the attache's sources of information upon which to draw. I have before me a letter from Grinnell, Willis & Co., of New York, asking information that will aid them in introducing a line of cotton goods ; from Boyle, Woolen & Co., of Dallas, who make baskets, boxes, fruit crates, etc. ; from the Advance Pump Company, of Battle Creek. My deductions in regard to answering the inquiries con- cerning typewriters would apply with reference to cotton goods, crates, and pumping machinery. Altogether, 1 believe our commercial interests* may be well served by the establishment of a commercial bureau in connection with the embassy. The value of the attache's services would depend, in a large measure, upon the industry, application, and peculiar fitness of the attache himself. As far as the consuls are concerned, I am confident they would heartily cooperate with the attache in promoting the interests of our manufacturers and exporters. Charles W. Kindrick, Consul. Ciudad Juarez, October 17, 1904. CIUDAD POKFERIO DIAZ. Replying to circular, " Promotion of trade interests," I beg to say that, while my experience in this service is not extensive, I realized long since that the consular officer is greatly hampered in his work, in this, that he is powerless to command the data from which he is expected to tabulate the information demanded at his hands. .There are many things of interest to the trade in the United States to be gathered by each consular officer peculiar to and showing the conditions existing in his particular locality ; but when he is told to report, in tabular form, minute information as to kind, quantity, and value of imports or exports to or from his district, there is nothing left for him to do but apply to the Mexican official having record of the same, who will most likely inform him that he has no force to put upon such work, nor is there any fund at his disposal, etc. The consular officer has then exhausted his resources, and can only report from his general knowledge and best information, all of which is uncertain, incomplete, and unsatisfactory. I have hitherto reported to the Department this state of the case. The fact is apparent to all, however, that a diplomatic representa- tive is free from the difficulties which stand in the way of the ordi- nary consular officer, having his residence at the seat of government of the foreign country, where there is a proper record of the various industries, and of the export and import of all merchandise to and from the country; and having diplomatic relations in existence 168 PROMOTION OF TRADE INTERESTS between the country he represents and the foreign power, he is in posi- tion to have an}- reasonable request granted him. Our diplomatic representative can also, without trouble, procure reports from any part of the foreign country, as to local conditions, from that country's local official, which may be, at his request, either furnished to him or to such consular officer of his own country within whose district such foreign official may reside. I heartily approve the plan suggested by your circular, and am of opinion that, if such cooperation as is there contemplated can be secured between the diplomatic representatives and the consular offi- cers, the facilities for collecting commercial intelligence will be greatly enhanced and facilitated. I recognize the wisdom of the Department's provision in said circu- lar, reserving the right to determine whether a report of a consular officer shall be amended or suppressed, in whole or in part, and that the annotations made by the diplomatic officer are simply for the assistance of the Department in reaching just conclusions. My first impression was that friction might result from the new order of things, especially if the diplomatic representative should fail to be diplomatic in his intercourse with the consular officers, or should show a captious or fault-finding spirit in dealing with the con- sular corps. The danger on this point will be obviated by the pro- vision of the circular, to the effect that the Department will decide finally upon the work of the consular officer. The work of the diplo- matic representative takes the same relation in the final determination of the matters reported as that of a master commissioner in a court of equity,, which the court passes upon, confirms, or ignores in its final determination of the equities involved. Taking this view of the mat- ter, I am satisfied that, if this plan is consummated, the utility of the service will be greatly advanced and a much more satisfactory result will be obtained. Lewis A. Martin, Consul. CrcDAD Porfirio Diaz, September 1. 190 '4- MAZATLAN. I have the honor to acknowledge the receipt of circular, " Promo- tion of trade interests."' and would most respectfully submit for your consideration the following : It seems to me that the step proposed is second only in importance and far-reaching effect in increasing our trade relations with other competing nations to the creation of the Department of Commerce and Labor, and if the diplomatic and consular service will " take hold " in patriotic spirit, as well as energy, we would soon have the best organized and best equipped commercial bureau in the world. The difficulty experienced- by consuls in many countries when they desire to obtain statistics for a comprehensive report, is often in- creased by the natural jealousy excited by the rapid increase of Amer- ican commerce and by the plea on the part of officials that they must obtain permission from their governments before they can give the desired information, which, in cases where there is no direct railroad communication with the capital, would make the report, when re- ceived, practicably useless on account of the length of time consumed PROMOTION OF TRADE INTERESTS. 169 in securing the same. Next, almost all officials object to doing such work without compensation, and when ordered by their superior to comply with the request, they sometimes delay the report so long that it becomes worthless. I have always made it a point to be on very friendly relations with the heads of the various state and federal departments in my jurisdic- tion, and in every instance that I aeked for information, the promise was quickly and readily given, but the execution of it was usually slow. It would be of the greatest importance to the consular corps, in making the various reports called for by our manufacturers and exporters, if they could have recourse to the diplomatic corps and request them to furnish such information, which could not be obtained in their consular districts without encountering unreasonable delay. Promptness in obtaining the desired information is of the utmost importance, and nothing would facilitate this more than the coopera- tion of the diplomatic corps with the consular corps. Being a commercial nation, it would be of untold value for the United States had we a commercial or industrial attache in each country, just as we have already a military attache. The duties of commercial attaches should be principally to secure statistics relating to the exports and imports of the United States ; to report upon the manners, customs, and, habits of the merchants of the countries to which they are accredited; to obtain data showing the place and country from which they import their goods; the value and class of such goods, duties, freights, and also custom-house regulations ; to suggest means of avoiding friction between the custom-house officials and shippers ; to provide information as to railroads and waterways ; their facilities for handling freights, etc. It is evident that a thor- ough business man, with large experience and broad views, would be needed to fill such a position. Louis Kaiser, Consul. Mazatian, August 27, 1904* NOGALES. I have the honor to acknowledge the receipt of circular of August 4, on which I am instructed to give my views. The diplomatic service would be of great assistance in obtaining general statistical information at the seat of government of a foreign country, for the reason that consuls are usually limited to restricted districts. It is my opinion that the advance made in recent years by consular officers in their utility in gathering information has been caused by an improvement in the personnel of the corps and by their pride in an independent service in direct communication with the Department, which holds each one of them responsible for his acts. In case this direct responsibility were assumed by the diplomatic service, would it not take away from consuls the stimulus for their best individual efforts? Valuable information is often reported by consuls, that might give offense if communicated by a diplomatic agent or received his official sanction ; and furthermore, in this coun- try, it is sometimes obtained upon private solicitation when, in my opinion, an official request might be refused. Albert R. Morawetz, Consul. Nogales, September 5, 190 4. 170 PROMOTION OF TRADE INTERESTS. NUEVO LAREDO. I have the honor of replying to }^our circular, " Promotion of trade interests," and of giving, as requested, a statement of my opinion. A careful reading of the circular discloses a thorough grasp of the sub- ject, both as to its general plan and the exigencies of its application ; but to confirm its advisability in every particular, and, doubtless, to secure a cheerful concurrence of the officers affected, you have called for an expression of their views. To begin with, the plan and its purpose are admirable. An accu- rate and positive method of gleaning trade information is indispen- sable to our foreign commerce, and to intelligent legislation. It can not be less than a patriotic pleasure for the consular service to cooperate with the Department in making this service as effective as possible to that end. For reasons which I conceive to be good, I believe the appointment of a commercial attache to be desirable. The duty of such attache, acting as inspector-general of commerce for an entire nation, would be uncompromising in its demand upon his time and energy, and much vigilance and study would be the price of the wide and varied information which must be the basis of reliable calculation. With the requisite time and material, an attache may become a commercial authority, capable of weighing the conflicting data before him, and supplying our tradesmen, and especially our legislative bodies, with such information as would enable them to secure all possible advan- tages to commerce and to avoid mistakes. It is the exclusive work of a capable brain, and could not justly be added to the duties of embassies as now organized. If this service is to be performed to its fullest measure, verging upon the competitive spirit which prompts it, such officer might be looked upon with disfavor by the accrediting country, and such duties, performed by our regular diplomatic corps, might work detriment to successful diplomacy in other directions. The incumbent should therefore stand apart and independent of other diplomacy, his prin- cipal relation to the foreign ministry being that of statistician ; never- theless, his diplomatic status should have a dignity adequate to the interests involved. As a means of counteracting any possible hostility, and to make the office as fraternal as possible among mutual compet- itors, I would respectfully suggest that the courtesy of an attache's statistical library relative to his own country be extended to similar incumbents of the accrediting country. While the appointee to this office should be a man whose opinion would be valuable, it is, nevertheless, desirable that the Department be responsible for the acceptance or rejection of a report: First, because the consular officer is entitled to be heard at headquarters, and, second, because the attache should not be placed in a position to create offense or to make his authority felt by those with whom he cooperates. It is my opinion that annual reports from officers so specialized, bearing upon the multitudinous conditions which affect trade, would enable an administration to take its international bearings, and would go a long way toward removing tariff legislation from a position of indefiniteness to a position more positive and scientific. James G. Burr, Acting Vice- Consul* Nuevo Laredo, October 6, 190 Jf. PROMOTION OF TRADE INTERESTS. l7l SAXTILLO. In compliance with circular of August 4, asking for an expression of my views upon the best method for the coordination and improve- ment of existing facilities for the collection of commercial intelligence and the promotion of American trade interests in this country, I beg to say that suggestions from diplomatic officers on certain inquiries from the Department would be of material assistance to consular officers, the former being acquainted in their diplomatic capacity with facts of commercial value, which are never brought to the attention or knowledge of a consular officer. Such source of informa- tion would certainly facilitate the inquiry and help to make it more exhaustive. Victor L. Duhaime, Consul. Saltillo, September 2, 190Jf. TAMPICO. In response to circular, " Promotion of trade interests," I submit the following : To the American exporter, a commercial attache stationed at the capital of a country where statistical information could be promptly and accurately obtained, where the first news of new enterprises and government works could be secured, would be of great value, pro- vided he be thoroughly posted on the local conditions of the various parts of the country to which he may be accredited and be familiar with the language thereof. Mexico, for example, from its tropical coast to its temperate interior on a plateau 6,000 feet above the sea, offers so varied a field for exploitation, so wide a variety of product and demand, that such commercial attache would be of little use un- less he could advise exporters that mining machinery could not be sold in Tampico, and that the market for thrashers was in Morelia and Jalisco, and not in Vera Cruz. I believe such commercial attache should be assigned to an embassy or legation, unless it would detract from the dignity thereof, for the fact that business is paramount over the world to-day, is undoubted. If the collection of statistics was all that is desired, an employee of a consulate could procure them. A competent attache could save time in the Department of State by editing reports from consuls, for they are often duplicates, and such revision, if general, would eliminate reports from the consuls to one country on the affairs happening in other consular districts until such reports were verified, thereby avoiding some mistakes. In a country like Mexico, the statistics of imports of any one port are misleading ; the total imports, alone, are of value. Reports show- ing Tampico to have received large shipments of chemicals and ma- chinery bring letters from our exporters asking for the names of the principal wholesalers in those lines in Tampico, and the writers are surprised to learn that there is none such. It is most important that the exporter and manufacturer should know of the demand for certain goods in a country, but it is also nec- essary that he should know the part of the country from which the demand comes. This should be the duty of the attache, to be in touch 172 PROMOTION OF TRADE INTERESTS. with such needs, and to him all communications to consuls should be referred where the information desired covered more than the imme- diate consular district. The questions propounded in the Department circular deserve the most careful consideration; the answers thereto will doubtless vary with the country from which they come. The seriousness and im- portance of the subject would seem sufficient to entitle the idea to a trial; therefore, would it not be wise to select a country which is a keenly competitive market for the American and European merchant and send to it a capable business agent or attache accredited to the embassy and then watch results in the saving of time to the consuls, the quality of the information furnished to business inquirers and the condensing of business reports? The opinion of our manufacturers and exporters of these results — in addition to that of the Depart- ment — would provide a basis for determining whether the plan ■should be extended or abandoned. Samuel E. Magili/, Consul. Tampico, September 6, 1904. VERA CRUZ. In response to circular of August 4, " Promotion of trade interests," T have the honor to submit the following : Whether or not it would be practicable for the embassy to transmit to consular officers instructions from the Department of State, from time to time, is a question that may be unhesitatingly answered in the affirmative, provided such instructions refer to matters within the consular district, or to points readily accessible. If the embassy, after a careful study of the subject, should give the consul the benefit of its opinions and note the same in the shape of facts or suggestions, the information thus obtained might prove to be of the greatest value and enable the consul to render a report as clear, complete, and com- prehensive as the material at his command will permit. Should consular officers be instructed to transmit their reports to the Department through the embassy, the latter doubtlessly could revise, change or correct a report, call attention to possible errors, either of fact or simply of judgment, and if necessary, in the opinion of the ambassador, eliminate entire sections of the same, if of the b>elief that such might give offense to the country to which he is accredited, or embarrass him in his official relations to the same. With reference to the possible effect the plan suggested might pro- duce on the consular service, I am prepared to state that this consu- late can not see any serious objections to the proposed innovation, and while not altogether sanguine of its complete success, appreciates the importance of cooperation with the embassy, as the latter, by its diplomatic status, has command of facilities for securing valuable data from the government statistics at first hand not obtainable by a consular officer with the same facility, or perhaps not at all. The embassy, by transmitting such information to the consul, would be of great assistance to the latter in all instances when such data are required to complete and fully cover all points upon which intelli- gence is desired. The diplomatic officer, however, should exercise the greatest care in determining what part of a report should be changed. PROMOTION OF TRADE INTERESTS. 173 modified, or possibly eliminated altogether, and his actions should not be governed by mere impressions he may have acquired through other sources, not accesible to the consular officer, as in that case it may result in practically destroying the value of a report altogether, or at least impair its utility. In all matters appertaining to a consular jurisdiction, the con- sular officer possesses the inestimable advantage of personal acquaint- ance and daily contact with merchants, importers, and exporters of all nationalities; he is on friendly footing with government officials, state and municipal ; he is or perhaps has been located at the prin- cipal seaport of the country ; is more or less familiar with the methods and customs of the people of his district, and, necessarily, must be in all respects better equipped than a diplomatic officer possibly could be with respect to procuring reliable and trustworthy* detailed intel- ligence from his particular district. This is not at all the case with the embassy, unless an officer specially detailed for the purpose and properly qualified for the position should be appointed. In this case, he should be endowed with authority to pursue his inquiries regard- less of expense or time, should the subject warrant it. However, in this respect, a consular officer, experienced and thoroughly conver- sant with affairs within his consular district, is perhaps better qual- ified for the work* under consideration than a newly appointed attache, provided he is no less restricted or limited in his methods of obtaining intelligence. In this respect, the Department, in nry opinion, will act wisely by communicating directly with the consular service, even though all consular reports should be transmitted to the Department through the embassy. It is to be assumed that the latter, in course of time, would gather valuable and reliable intelligence on many subjects by reason of having studied the various consular reports passing through its hands, but whenever a consular officer has information to trans- mit not called for by special instructions, and this information has been secured from sources within the limits of his jurisdiction or from any other trustworthy and reliable source, he should address himself directly to the Department, without submitting the report to the embassy and thereby delaying its transmission, perhaps unneces- sarily, and so impair its usefulness to the public at large. Wm. W. Canada, Consul. Vera Cruz, September 30, 1904. CENTRAL AMERICA. Report from Minister Merry. American Legation, San Jose, Costa Rica, September 2, 190^. I have the honor ( to forward a memorandum prepared in accord- ance with your circular to diplomatic officers of the United States, dated July 29, 1904, and relating to the promotion of trade interests. 1. It will be practicable at any time to transmit to consular , officers instructions received from the Department of State for any informa- tion wanted, and to add thereto when forwarding such information 174 PROMOTION OF TRADE INTERESTS. anything available that may tend to increase the value of the consular report. The general revision of the consular reports thus transmitted will be of doubtful value, and should, it is suggested, be restricted to errors of fact. Any information that might give offense or cause dip- lomatic embarrassment should be so notified to the Department of State, with request for its being treated as strictly confidential and not available for publication. 2. All consular officials in this jurisdiction (1 consulate-general, 4 consulates, and 6 consular agencies) are required to correspond regu- larly with this legation by every mail (generally trimonthly), and replies from the legation are promptly made. All consular officers in this jurisdiction comply with this instruction except two. who are foreigners with controlling interests not specially friendly to the development of American industries and commerce. This legation being accredited to three republics (Costa Rica, Nica- ragua, and Salvador), its usefulness to the Department of State must depend somewhat upon information received from consular officers by means of the correspondence alluded to. ConsequentrY. the legation letters to these officials are largely interrogatory and suggestive, but not intended to call for information properly appertaining to their usual consular reports. On the contrary, occasions have been availed of to suggest that such reports shall be made direct to the Department of State on appropriate topics, and care has been taken to avoid the impression that it is desired to deprive consular officers of the credit appertaining to them in connection with reports made direct. It is obvious to the Department that there is a great difference in the value of consular correspondence; some officers write concise and valuable dispatches while others are poor correspondents, and occasionally there is a disposition to exaggerate the conditions alluded to. Conse- quently, intelligence thus acquired must be used with discretion to avoid sending unreliable information to the Department of State. It is my impression that commercial attaches to Spanish-American legations will not be useful to the United States. Recognized as such distinctively, they will be viewed with suspicion by the Governments and by the mercantile and industrial interests of the Republics, and so far from facilitating information to them, it will be withheld, when practicable. At present the consuls, as commercial representa- tives, can obtain the class of information needed for the benefit of our people without being recognized as being specially interested in doing so. The consular system of the United States, as proven by its work, is, in my judgment, the best in the world, but can be improved by appointing salaried vice-consuls in place of consular and commercial agents, who are compensated by fees by them collected and allowed to transact other business as well as to hold other official appoint- ments. The additional cost of making this most desirable change would, I apprehend, be inconsiderable, and can be closely estimated without difficulty. 3. Xo additional assistance would be at present needed at this lega- tion to carry into effect the programme described under question Xo. 1. In the case of increased work resulting from many more transla- tions, with reports on commercial and industrial topics, it might be necessary in the future to employ a translator and clerk to prepare documents, under control of the minister and secretary of legation. PROMOTION OF TRADE INTERESTS. 175 I shall have great pleasure in carrying out any instructions sent me by the Department of State in this connection. The Department is well aware that there occurs at times considerable friction between neighboring consular officials, and it is possible that some of these officials will consider the execution of the Department instructions in this connection as an interference with their official duties on the part of the legation. I am of opinion, however, that such consular officers are to be considered exceptions, the general disposition being to honestly serve the interests of our Government and its citizens. William Lawrence Merry. Opinions of Consular Officers. BRITISH HONDURAS. American Consulate, Belize, August 2^ 190 i.. In reply to circular of August 4, requesting an expression of views. I would answer question 1. as the only question that could apply to this particular office. I think that the assistance, of legations in giving or revising infor- mation as to trade conditions is only useful and practicable when rendered in the country where the minister resides, and I can not see how the ambassador in London, for instance, can advise of conditions or openings for trade in distant colonies of Great Britain, or detect a errors of fact " in reports, though any errors of language or of judgment might well be passed upon byiiim without any prejudice to the later review by the Department ; that is, if the delay thus caused is not of any consequence. I do not, as a rule, think it advisable to have a consel's report sent to ministers at distant capitals from posts so far away. W. L. Avery, Consul. Belize, August 21±. 190^ GUATEMALA. I have the honor to report in reply to circular, " Promotion of to de interests/' that it seems to me it would be better to have the consul- general do the work of a commercial attache, rather than incumber the diplomatic representative with that class of work, which is foreign to most of his more important duties, while it is in direct line with the duties of the first-named officer. It would seem that the social and diplomaic duties of an ambassador or minister would be inter- fered with much in assuming such duties, while they would strengthen the position of the consul-general. The relations of the diplomatic and consular officers at the capital should be such that the consul-general could freely confer with his chief on all semidiplomatic questions that might come up in dealing with commercial matters. It would be necessary to enlarge the scope of the consul-general's relations with the Government where he is sta- tioned, either by the Department or by a request on the part of the 176 PROMOTION OF TRADE INTERESTS. diplomatic representative that the consul-general be given special privileges in looking up all commercial and industrial matters. This, I take it, would put him in touch with everything necessary to carry out his work. Alfred A. Winslow, C onsul-General. Guatemala City, September 19, 190 4. HONDURAS. CEEBA. In reply to circular of August 4, I wish to say that, in my opinion,, any plan for the cooperation of the diplomatic with the consular corps for obtaining commercial information would be a great improvement on the existing facilities. The services of the diplomatic officers would be particularly valuable in obtaining statistical information. Even if the consular officer could obtain such information, it only concerns the port where he is located. This statistical information of exports and imports is prepared at the various ports of entry and forwarded to the capital, where eventually it is published in some periodical issued officially by the Government, but by the time it has been so published and reaches the consular officer, it is too old to be of interest to the enterprising American merchant and exporter. A diplomatic officer would find it easy to obtain such reliable infor- mation, and it could be used as a supplement to the report of the consular officer regarding matters of importance and interest in his local district. Dean E. Wood, Consul. Ceiba, October i, 1904. ITIULA. In compliance with circular of August 4, I have to report that, in my judgment, the plan proposed is both desirable and feasible, and, from my experience here and in Mexico, the only plan which gives any clear promise of searching out and reporting all the facts. There should be no temptation on the part of consuls, either overambitious or from a mistaken sense of duty, to cover one another's territory or report on maters coming more naturally under the authority of the minister or consul-general. It is manifestly absurd for me. in my insular position, to report upon things continental that can with greater ease and authority be reported upon by the consul at Tegucigalpa or the consul at Puerto Cortes. It is clear to my mind that the diplomatic officer can unlock some doors that the consul can not reach. If there be any lack of cooperation between diplomatic and consu- lar officers, a step in the direction might be taken by investing the consul-general or the consul at the capital of a country or in some prescribed district with authority for gathering data and reporting upon matters pertaining to the promotion of trade and commerce, all consuls in his district to report through him, this making him PKOMOTTON OF TRADE INTERESTS. 177 responsible for the adequate reporting of his district. Such consul- general or consul could be selected and appointed under instructions officially emphasized. Let the appointee have the equivalent of a newspaper training, or at least the instinct for commercial news, and let all the consuls in his district be encouraged to keep in personal as well as official touch with him. More effective service might possibly be secured by allowing the minister at the capital to attend to his diplomatic functions without being loaded with this extra work, and fixing clearly this proposed responsibility upon some consular officer at the capital who shall be in touch with the minister. At any rate, the consular service might be thus strengthened and made more efficient. Either course would be preferable to the present method, or lack of method. John B. Richardson, Consul. Utilla, October 19, 190^ NICARAGUA. t MANAGUA. In reply to circular of August 4, I beg to state that, in my opinion, the plan for the cooperation of diplomatic and consular officers for the " Collection of commercial intelligence and the promotion of American trade " is excellent for those countries where such courte- sies are extended only to the diplomatic service, but I must confess that I am unable to see what would be the advantage in Nicaragua, for instance, where every courtes}- of that kind is extended to the consul, and no limitation is put upon him owing to lack of diplo- matic status. I have always cultivated such relations with the officers of this Government that I can go directly to any officer, high or low, and have never been refused the information requested or a personal interview with any official, from the President and his ministers down to the collector of the port. Whenever any diplomatic officer accredited to this country has desired any information on whatever subject, it has been the custom here to obtain it through the consular officer. For instance, Minister Merry has always obtained, through me, what information he has required for his reports, and the only difficulty encountered is the lack of a bureau of statistics, where such information can be obtained, as the minister's reports and all other statistics are old before they are published. Chester Donaldson, Consul. Managua, September 10, 1904- SAN JUAN DEL NORTE. Replying to the Department's circular, " Promotion of trade inter- ests," I beg to say that the plan outlined for the cooperation of the diplomatic and consular services would, in my opinion, add much to the effectiveness of the consular service and make possible results H. Doc. 245, 58-3 12 178 PROMOTION OF TRADE INTERESTS. which are not attainable under present conditions. Even in an unde- veloped country like Nicaragua, a consul is constantly receiving letters asking questions that can be properly answered only with data from all the consular posts in the country. As it is now, lie would not feel justified in often asking his colleagues for information, and if he did, could only expect meager replies. If the plan proposed by the Department were in operation, impor- tant questions could be forwarded to the legation, where they could be transmitted to the various consulates, and the combined replies, together with such information as it would be possible for the lega- tion to obtain, would make complete and reliable answers. On the other hand, the legation would be constantly making requests for information upon points which, although the data might be at hand, a consul might not think of reporting upon, not knowing the informa- tion was desired. The system would give American merchants a feeling that the replies could be relied on, and many foolish ventures would be pre- vented and many good projects brought into being. Doubtless, such an arrangement would eventually lead to a more systematic and thorough collecting of trade-museum samples, and would be benefi- cial in various other directions. John Todd Hill, Consul. San Juan del Norte, September 2, 190 J±. SALVADOR. Opinions of the C onsul- General. In replying to circular " Promotion of trade interests," it seems best to show the facilities of this office and the cooperation that may be expected in the legation's efforts to collect accurate commercial information. In this connection, it may be stated that there exist locally two sources of such information: The Government bureau of statistics and the private business houses and industries. There exists no chamber of commerce, mining bureau, or merchants' association. The Government office of statistics confines itself to collecting and com- piling statements more immediately concerning the public revenues, and these consist principal^ of tables of imports and exports through the different ports, values of merchandise and products thus passing in and out, receipts and expenditures of the several fiscal offices, and comparisons with fiscal business transacted during former 3^ears. Minutely detailed information is not obtainable. To illus- trate, I would say that merchandise of a similar kind is always brought under one general head. Thus we find that under " Machinery " all metal or woodworking implements, coffee plants, sawmills, windmills, engines, and boilers are classified under this one head, and it is not possible to obtain the importations and values of each group. To this is added the difficulty that these statistics are first got out in the rough in March or April of each year, and so first appear in the report of the minister of finance and public credit presented annually to the National Congress. After revision, they PROMOTION OF TRADE INTERESTS. 179 are not published until November, so that they are always some nine months old before reaching the general public. Through the courtesy of the Government, this office is conceded very free access to the bureau, and all information requested is always promptly given, within the limitations above stated. Possi- bly, more accurate squrces of information as to port operations are the different forwarding houses there established. They, however, publish no reports or statistics, and are also quite reticent as to the business they transact, so that they can not be relied upon to furnish figures of any kind. In other lines, the local business nouses must be depended on. This is, for the same reason, necessarily a tedious and unsatisfactory method of procuring what is, at best, only an approxi- mate estimate, wherever figures are concerned. On the other hand, it is the only way of getting at the merchants' requirements whenever it is desired to indicate to manufacturers the measures best calculated to attract this market. I am not aware that Salvador maintains any commercial or indus- trial attaches specially or exclusively charged with the duties of such an office. Its consuls collect and forward, from time to time, such data as they consider useful and advantageous to their country's industrial interests, much in the same manner as obtains in this serv- ice of other nations. This office receives inquiries, from to time, from its legation, and every endeavor is made to forward the corresponding report as fully and promptly as possible. In conclusion, I may state that the local consular officer must be solely depended on for commercial data. As shown, the local Gov- ernment bureau of statistics is deficient; the private business houses do not care to publish their transactions, and what tabulated state- ments are given out come so late as to lose much of their usefulness. As so little is given to the general public, and as this office has access to whatever official information exists, it is difficult to indicate how the consular officer, under local conditions and circumstances beyond his control, could better cooperate in this matter with the legation or Department of State. John Jenkins, Consul- General. San Salvador, November 17, 190Jf. BRITISH WEST INDIES. Opinion of Consular Officers. ANTIGUA. I have the honor to acknowledge the receipt of Department circular, dated August 4, in regard to a plan for the cooperation of diplomatic and consular officers for the increase of trade. These islands are so far separated from the home government and from the embassy that the plan would not be practicable here, but I should think it very valuable near the seat of a central government. The consul here has ready access to the colonial secretary's office and to the governor of the colony, and while I have been here. I have found both very ready to grant any reasonable request. 180 PROMOTION OF TRADE INTERESTS. In the islands away from the head of the colonial government. I dare say the consuls do not find it so easy to get what they want. It. might, therefore, be a benefit to the service to place the consul or consul-general at the seat of a colonial government on a basis that would always insure them such access to the head of the government as would enable them to get what information §vas desired. I throw out this suggestion for what it is worth, without knowing whether this would either be possible or desirable. Certainly at the present time, it would not be necessary. W. K. Estes, Consul. Antigua. August 23, 1904. BAHAMAS. In answer to circular. ; * Promotion of trade interests." I have to say that, since there is no embassy or legislation in this country, my views can have little value. As far as facilities for obtaining official infor- mation are concerned. I should never have any trouble in obtaining full and satisfactory answers to any questions I might ask. Julian Potter. Consul. Nassau, Xew Providence. September 6, 190 4. BARBADOS. In reply to the Department's circular, " Promotion of trade inter- ests," I will state, after careful consideration, that while the circular undoubtedly does not apply to this post, as I can always obtain easily all information possible without any outside aid. I believe that in some countries a commercial attache would be of great assistance in procuring data and information desired at times by the Department, which a consular officer might not be able to obtain without assistance through diplomtic channels. David F. TTilbee. Consul. Barbados. TVest Indies, December 8. 1904- WEST IXDIES. Report from Minister Squiers. CUBA. American Legation, Eabana, August 19, 1904. Acknowledging receipt of Department circular instruction, dated July 29, 1904, I have the honor to say that a definite plan of action for the guidance of diplomatic officers in the preparation of syste- matic, reliable, and carefully compiled commercial reports would, without doubt, keep our manufacturers and exporters more closely informed as to actual trade conditions, and there is no reason why such reports, as well as the collection of trade statistics and data. PROMOTION OF TRADE INTERESTS. 181 should not be undertaken by officers in the diplomatic service. These officers have opportunities for obtaining reliable information directly from the departments of government specially charged with trade matters. Consular officers, on the other hand, having no relations with the government departments, depend for their information either upon unreliable advance reports published in the newspapers, on trade gossip, or on long-delayed official publications. Informa- tion reported under such conditions is uncertain, possibly untrue, and therefore unreliable, misleading, and worse than none. A consular officer whose knowledge does not extend beyond the limits of his particular jurisdiction is incompetent to make reports on conditions which obtain outside of his district. His reports, however, would be of great service to the official charged with making a general report on the trade conditions of the whole country. Hav- ing access to all the commercial information collected by the depart- ments of government specially charged with compiling trade statis- tics, this official is the one best equipped for making a report of greatest service to manufacturers and exporters. The information would be exact and reliable, being based on the information furnished by the consul and verified by that obtained from Government sources. Special reports made by consular officers from time to time ought to be revised, since conditions prevailing in their consular districts possibly do not exist elsewhere. In order to act intelligently and to take advantage of trade conditions in a particular locality, a manu- facturer or an exporter should be closely informed on the trade situa- tion as a whole, and hence unrevised reports from a particular dis- trict are often very misleading, and, if acted upon, costly. Referring to the questions on the third page of the circular, I have to say that I consider it entirely practicable for this legation to assist the Department in obtaining information from United States consular officers in Cuba, according to the suggestions contained therein, and when such consular reports are received, to undertake to revise, correct, or add to them, according to the best information obtainable here; and to cooperate generally with the consular service in the collection of trade data and information according to any line of action laid down by the Department. A well-equiped commercial attache would be of great assistance, particularly in those countries where we have an undeveloped trade, but with good prospects for increasing it, as in Cuba, South America, and the Far East. Generally speaking, a secretary of legation has no special qualifica- tion, training, or inclination for such work, the traditions of the service being opposed to it. Unless the Department finds it advisable to add a commercial attache to this legation, I consider the present staff quite equal to the increased work proposed. I am advised that the Cuban legations in Madrid, Paris, and Lon- don have, attached to them, vice consuls, who report at fixed times on the commercial situation of the countries to which they are accredited, their reports being subject to the approval of the chief of mission. Cuban diplomatic officers do not correspond with the Cuban consuls in foreign countries except on matters of political interest. H. G. Squiers. 182 PROMOTION OF TRADE INTERESTS. CIENFUEGOS. Opinions of Consul Baehv. Upon my recent return to my post. I found unanswered Department circular, " Promotion of trade interests/' In the expression of my views relative to the practicability of the suggestions contained therein, I have the honor to state that, with reference to this consular district, the local officials have thus far replied with promptness and courtesy to my requests for commercial and industrial data, affording me full and comprehensive reports upon all subjects under investiga- tion. In consular districts where the local officials manifest unwill- ingness to do this, I have no doubt that a commercial atache would be an extremely useful official, charged, as you say, with the special duty of collecting industrial and trade information, and concerning whose status no serious question of propriety could arise. All the Cuban customs officials and municipal officers with whom Lhave come in contact have, instead of placing restrictions upon my endeavors to obtain information, deemed it wise to allow the record of the importation and exportation at the several ports, as well as the wants and requirements of their countrymen, to be published for the perusal of American exporters and importers. Max J. Baehr, Consul. DUTCH WEST IXDIES. Opinions of Consul Cheney. CURACAO. I take the first opportunity of answering circular, c * Promotion of trade interests," a copy of which was received in this office soon after my departure for the United States. Curacao is so situated that this consulate has had little to do with diplomatic officers. A knowledge, however, of what is being done in other countries where the consular and diplomatic officers are in close touch with each other can not be otherwise than helpful and stimu- lating to duty, and I welcome it as such. I thoroughly appreciate and enter into the purpose to promote the interests of American business abroad to the utmost, and desire to do all in my power to that end. More than half the postage paid by this office is for answers to inquiries from American citizens pertaining to business and the possibility of extending it. The ascertaining of the facts requires no little time; but there is abundant satisfaction in having some part in a work which has already produced very substantial results. That more than half the imports into this colony are from the United States is undoubtedly due mainly to the efforts of my predecessors. If that proportion decreases, I mean to know why, and to inform the Department. My field is limited; but, as a rule, what PROMOTION OF TRADE INTERESTS. 183 finds its way here forces its way into Venezuela, whose people come here so largely to trade, coming with empty and going home with full trunks. Elias H. Cheney, Consul. Curaqao, West Indies, December 1, 190 Jf. HAITI. Report from Minister Powell. American Legation, Port au Prince, August 17, 190 J^. I have the honor to comply with Department's instructions in its circular, " Promotion of trade interests." Before answering the points requested in the circular, permit me to say that if our Government desires to enter into active competition for a share in the commerce of the world, or to maintain the effective position it has secured, the present action it is about to take is most important in more ways than one. . Though among the youngest in point of service in the diplomatic field, I have felt that much more could be done in this direction than has been or is being done, without encroaching upon the strictly con- sular work, as laid down in the Department's instructions to its con- sular officers. In the past, and even in the present, the diplomatic work has been somewhat circumscribed in this particular. I do not mention the fact as a reason for increasing the work of our embassies or legations, but I fully believe much more could be clone effectively if our .legations were intrusted with a portion of the work that in the past has been considered as belonging strictly to the consular service. The position of an embassy or a legation is such as to enable it to secure for the Department much valuable information that is now lost, or, rather, that does not reach the Department. The diplomatic officers are so placed that they can secure information more minutely and over a larger field than that occupied by the consuls; they can not only supplement a consul's work but they can make it more effect- ive, and at the same time open new channels of information that would be closed to a consular officer. Such work need in no wise interfere with the effective work of many in the consular service. If the Department adopted this line of action, I am fully persuaded that within a few years our commerce would feel the effects of it, and we would occupy a most enviable position as a commercial power. It would give an impetus to all our home industries and would carry the handicraft of American mechanics into the most remote parts of the world. It would do miore than this — it would open markets for American goods that are now closed, and would enable us to cope with the keenest competition. xill that is needed is for the Department to formulate a definite plan upon which all can work, providing, of course, Congress appro- priates the means to make this work effective. As I have stated, the consul's office is local, while the functions of our embassies and legations cover a much wider field, and for this rea- son thev could secure data that would be most useful to both our 184 PROMOTION OF TRADE INTERESTS. Government and our commercial interests. This information com- ing from the embassies or legations and being accurate, the Depart- ment could make immediate use of it, and our various commercial interests would feel the benefit. While our consular service has achieved wonderful results in the past few years, there remains much to be accomplished in order to obtain the full measure of profit to all interests. I have the honor to reply to the Department's inquiries as follows : 1. It will be practicable for this legation, if consular officers are instructed to forward their reports to it regarding any matter that the Department desires information upon, to supplement such infor- mation according to the lines laid down. 2. (a) At present, no. (b) I believe this cooperation could be easily secured without friction between the two services, (c) This Government has no commercial or industrial attaches, (d) I do not think it advisable, at the inception of this service, that an attache be named in connection with this legation. This work can be done by the present representative; but this statement should not be con- sidered as binding upon his successor, who might hold a different view. Wheat I think might be required would be the addition of a clerk to our present force, as, to make this work effective, we should open a new set of books for recording data as we receive it, as well as all reports that might emanate from this legation. If the Depart- ment required someone to travel through the various sections of the Republic to collect data upon a given subject, an attache would possibly be needed, but, as I have stated, I think the work can be accomplished without one. 3. None, except as stated in 2 (d). W. F. Powell. SA1STO DOMINGO. Report from Minister Daicscm. American Legation, Santo Domingo, August W, 190 It . Replying to your circular of July 29, in regard to cooperation be- tween the diplomatic and consular services in collecting commercial information, I have to say that our minister here, being also consul- general, the plan outlined could be easily put into practice in this country. Answering j^our several questions specifically, I would say that it would be practicable and, I think, advantageous for this legation to transmit the particular inquiries and instructions of the Department in regard to commercial information to the consular officers, and to annotate them in the mode indicated. At present, there is no such cooperation. No foreign government has any commercial or industrial attaches in this Republic. I do not think a commercial attache at this legation necessary at the present time. An ambitious and intelligent clerk would be sufficient, under the direction of the minister, and he would have time to aid in other matters. Additional assistance to the extent of $600 a year would be needed PROMOTION OF TRADE INTERESTS. 185 to enable me to carry into effect the programme described and to give proper attention to the preparation and revision of commercial reports. I now have but one clerk for both legation and consulate- general, and it will be difficult for the two of us to keep ahead of the work already in hand. He receives $500 a year from the fund for clerks at consulates and $400 from the legation contingent fund. If the present consular allowance of $500 were increased to $900, one clerk could be employed with it who would devote his whole time to consular and commercial report work. Two hundred dollars added to the contingent allowance for the legation would make $600 avail- able for another clerk, who would attend exclusively to legation copy- ing as well as the translations, which at present I make myself. A man competent for such work could, I think, be obtained for $600 a year. My experience in Santo Domingo has been too short to enable me to base upon it any suggest ons which would be likely to further the general object sought. However, during my seven years' service as legation secretary in Brazil, where circumstances especially drew my attention to tariff and commercial matters, I made observations which may be of some value to the Department. Most excellent work in the preparation of commercial reports was done there b}^ energetic, intelligent, and careful consuls. An impor- tant stimulus I believe to have been a desire to recommend them- selves to. the Department. In my judgment, the intervention of a legation should not be in a form calculated to weaken the conviction that the preparation of good reports may advance the writer's stand- ing and bring him into closer relations with his responsible chiefs at / Washington, in whose hands lies, or should lie, his professional future. Further, I am convinced that a system of efficiency reports, like those in our Navy, made by both the immediate and indirect superiors of every man employed in the consular and diplomatic services, would be beneficial in many respects, and especially so in securing a systematic and general preparation of commercial infor- mation. It sometimes happens that a consul sends in among his early reports some which, on account of faults in form and substance, are not printed. He becomes discouraged, and so, whatever real capacity he has is never developed, and the knowledge he is constantly absorb- ing is useless to American commerce. A minister, close at hand, with opportunities to know the consul personally, and enabled by his familiarity with local affairs to indicate specific lines of inquiry, might be able to utilize his capacities. The same consideration would apply in the case of an indifferent consul. A careless consul sometimes makes erroneous and misleading statements in his reports which, in the nature of things, can not be detected except by a person expert in regard to that particular country. For example, he may misunderstand tariff legislation, and report an increase in customs duties incorrectly. Such mistakes necessarily escape Department officials, and therefore, wrong infor- mation is published which could easily have been detected had the report passed through the hands of a competent minister on the ground. Translations of changes in tariff laws, customs regulations, negotia- tions of national loans, and other actions of the central government 186 PROMOTION OF TRADE INTERESTS. affecting commerce, are sometimes never transmitted, or the labor of preparing them is unnecessarily duplicated by ministers and consuls, acting independently. The ministers or consuls-general should be held directly responsible for such matters. The German, Italian, and Austrian legations in Brazil took meas- ures to be constantly informed about commercial matters affecting their respective countries, and made frequent and exhaustive reports. The latter two legations, at least, exercised an unremitting control over rhe correspondence with their consulates about such matters. T. C, Dawson. SOUTH AMERICA. ARGEXTIXE REPUBLIC. Be port from Minister Bectupre. American Legation, Buenos Ay res, October 6. 1904. Eeferring to the Department's circular instruction of July 29 last, concerning the " Promotion of trade interests,'' I have the honor to state as my frank and candid opinion, based upon experience in both the consular and diplomatic services and upon mature deliberation, that I do not believe the proposed plan of supervision and revision by diplomatic officers of the reports of consular officers to be feasible or likely to give satisfaction. I am thoroughly of the opinion that revision and expurgation are" essential and necessary in many of the consular reports, and super- vision of some sort or other advisable in all, for I have had complaints made to me by our merchants that our consular reports are often untrustworthy, and I am aware that, in a great many instances, our merchants and manufacturers have been induced by inaccurate and misleading statements to send their agents at considerable expense to foreign countries only to discover that the opportunities reported by the consul did not exist or was wholly overestimated. Our manufac- turers are every day looking for new and better markets abroad, our home markets becoming every year more and more sated with our products; in other words, we have become an exporting country. Consequently every branch of trade is calling out for accurate and reliable information. And what is more natural than that they should look to the Government and to the Government's agents resi- dent in the foreign centers of trade to supply their need ? Our home Departments, as for instance the Department of Agriculture, are doing a wonderful work in the gathering and dissemination of accu- rate statistics and information in all the branches under their respect- ive supervision. Their reports are eA r ery where sought abroad, and their statements accepted with a flattering readiness and eagerness. Our own citizens at home have every right, then, it seems to me, to expect from our foreign trade representatives reports and statements upon which they can rely with at least the same implicit faith that foreigners are putting in the statements of our home bureaus. And I sincerely believe that this thing can be accomplished and that, too, PROMOTION OF TRADE INTERESTS. 187 with the existing — though perhaps modified and improved — system, without the multiplication of offices and the dividing and subdividing of authority by the addition of commercial attaches or the confusion of two properly distinct services. My reasons for want of faith in the wisdom of the plan proposed are two : First, to make the consular officer subordinate to the diplo- matic officer in the matter of trade reports would tend, nay more, would be sure to destroy the spirit of initiative and emulation in the former — that spirit that is the secret of all the wonders of American civilization and attainment that marks the wonderful contrast be- tween the Old World and the New World civilizations; that all our institutions foster and that makes our young men, w T hile still in the prime of life, old in ingenuity and attainment. The need of the hour is, then, to stimulate rather than to repress and destroy this spirit of initiative in our consuls. It is a known fact that our consuls are of very different caliber, character, and qualifications for their offices, and I firmly believe that the work of the individual takes its character from the character and fitness of the man. The unreliability or insufficiency of some consular report is due, in my opinion, to individual characteristics, rather than to inability to obtain information, or to limitation by reason of lack of diplomatic status. My experience is that all the bureaus of government having to do with statistical or commercial affairs are always open to consular officers on grounds of international and personal courtesy, and that instances where diplomatic intervention is necessary to secure first-hand information are very rare. On many such rare occasion, when the consular officer can not reach the source of official information, a diplomatic officer would always stand ready to lend his assistance. My second reason is that I so thoroughly believe that the sphere of the diplomatic officer and that of the consular officer are two distinct and different spheres and should be kept so. The consul has to do with trade, the diplomat with statecraft; the consul is frequently a merchant, the diplomat should be a statesman. The consul deals, in the daily routine of his office, with the concrete facts and figures of commerce; the diplomat with the various situations arising between friendly or jealous and hostile peoples, with comity of nations and international law, with equity and the theory of government. These spheres are absolute and distinct; they should not be confused, nor can fitness for the one imply in any sense fitness or capacity for the other. Not only are the two spheres distinct and the one officer unqualified for the duties of the other, but the supervision by the one of the duties that are alone within the province of the other is impracticable as calculated to lead to friction and hard feelings. And in the case of the diplomatic officer, he could not be given even supervisory power over the trade reports of the consul, provided this were fixed by law as, and publicly known to be, a part of his functions, without its de- tracting somewhat from his status as the representative of his govern- ment before a foreign government. To put it concretely, if it were a part of my duties to go about among the people of the country in which I am located for the purpose of collecting trade information. with the object either of making or of supervising reports, my stand- ing in this community would inevitably suffer. 188 PROMOTION OF TRADE INTERESTS. The place, then, in my opinion, to vest the needed supervisory power is within the consular service itself. I beg leave to venture the statement that if our consuls were all made subordinates to one or other consul-general; were this consul-general — and his subordi- nates as well — carefully selected with a view only to his fitness and his uprightness and disinterestedness of character; were his duties defined primarily as those of supervision and of study of and report on trade conditions, the routine of office work being delegated to a proper inferior — under these conditions our consular service would take a still higher rank among those of other nations and our consular reports assum a better and more reliable character. The considera- tion extended to consuls-general in the capitals to which I have been accredited is such that their personal status and consequent facility for collecting industrial and trade information preclude the necessity of sending commercial attaches, provided the same care is exercised in selecting the consul-general as would be in selecting the commercial attache. The responsibility being thus within the appropriate serv- ice, the supervision could be exercised without the friction that would necessarily arise in case of supervision by a diplomatic officer. The consul-general, a consul's own proper superior, to whom he is answer- able for all his acts, could criticise and revise the work of the consul and outline future work for him with impunity; whereas if this were done by a diplomatic officer it would lead to friction, and a con- sular officer, nursing a grievance growing out of such relations, would thereafter be less inclined to exertion in preparing reports, and being answerable to no immediate superior, would lose all initiative and content himself with his routine work. In the three different coun- tries to which I have been accredited, the British consuls make all their reports to or through the British legations. I am quite certain that this system is not satisfactory to the consular officers, and am con- vinced that the general results prove our present system to be better than theirs. Such improvements as I have outlined above would leave no room for question as to this superiority. If, however, it is decided to utilize the diplomatic service in col- lecting commercial information and in trade expansion, I believe it should be along more independent lines than those outlined in the Department's circular ; a cooperation, if you please, with the consular service; but with a responsibility only for the work emanating from its immediate instructions. I would thoroughly approve of giving the first secretaries of legation or embassy, in the countries where extra effort is deemed advisable, something of the status of commercial attaches, doubling for this purpose their salaries — for they are most pitiably underpaid at present, and nothing less than the doubling of their salaries would be a competent remuneration — and giving them the necessary allow- ances for extra clerk hire and other expenses. Then, I believe it would be practicable for the Department to send all instructions for particular information or special inquiries directly to them, and to authorize them to prepare or have prepared the desired reports. In this case it should be part of the consuls' duties, and they should be especially instructed to hold themselves in readiness and to exert themselves to put at the disposal of the legations and embassies all the information at their command, and to prepare answers to all the questions that might be submitted to them by the diplomatic officers PROMOTION OF TRADE INTERESTS. 189 concerning matters in their respective jurisdictions; these answers not to be treated as independent reports, but to be used as informa- tion only. In case this plan were adopted. I would say that the remuneration of the secretary of legation at this place, inclusive of all allowances for extra clerk hire and additional expenses, should be $5,000 per annum, and not less. In answer to the specific numbered questions of the last part of the DeparmemVs circular, I have the honor to state that, in my opinion, for the reasons given above, it would not be practicable, although entirely possible, or advisable for me to transmit the Department's instructions for particular inquiries to the consular officers in this country. Likewise, revision and annotation by me of tjieir reports would, for reasons adduced above, seem to me ill advised. I do not think any precautions of the Department or this legation could pre- vent the inevitable friction that would arise, or preserve the spirit of initiative of the consular officers, under such circumstances. There is no such cooperation between the diplomatic and consular services of this country. The Argentine Kepublic has one commer- ciarattache, at Rome. He is connected with the legation, making all his reports through the minister, and ranks below first secretary. He receives $3,000 gold per annum. I do not believe, after conver- sation with the British and German ministers and with officials of the Argentine Government, that the system of commercial attaches is considered a success. To carry the programme described under question 1 of the circular into effect, about $1,200 should be appropriated for extra clerk hire and other expenses. And, as the burden of the additional work would fall upon the secretary of legation, and he is already inade- quately paid, I think his salary should be doubled. In expressing the above opinion, that the diplomatic and consular services are and should remain two distinct services, so far as the distinctive work of each is concerned, I do not mean to say that the general supervision of the latter by the former, which has always existed, should cease. On the contrary, I consider the consular service subordinate to the diplomatic service, and a general accountability to it necessary. And I feel it my duty to avail myself of this opportu- nity to say that I believe that our consuls should not be allowed to report directly to the Department in matters that are solely and alone within the province of the embassies and legations, such as relations of one country to another, general political relations within a country, etc. ; in short, in any matters other than those of commerce and trade relations. Here, I sincerely believe, the province of the consul ceases. All matters, other than commercial and industrial, should be reported by the consul to the diplomatic agent in the coun- try to which he is accredited, and by him to the home government: otherwise the diplomatic officers might be seriously embarrassed by the consuls reporting directly matters that are wholly and alone within the province of the minister. This legation is thoroughly interested in the extension of American trade, and to that end has, on its own initiative, been reporting to the Department all matters that seemed to it to deserve its attention or calculated to interest the American merchant and manufacturer. Whatever action the Department may see fit to take in regard to the matter discussed in its circular and in this answer, this legation will 190 PROMOTION OF TRADE INTERESTS. continue to show its interest by such voluntary contributions, and will always hold itself ready to serve, to the best of its ability and so far as other duties admit, all the interests commercial of the American people. With their best interests at heart and my duty to my Gov- ernment clearly in view. I have the honor to submit this frank response to the Department's circular inquiries. A. M. Beaupre. Opinions of Consular Officers. BUENOS AIRES. I have the honor to acknowledge receipt of circular, wC Promotion of trade interests." in which I am requested for an expression of my views. I do not hesitate to say that I do not think it practicable that instructions from the Department of State to the consular department should go through the ministers : neither 'do I think it practicable for consular reports to go through the hands of the minis- ters for correction on subjects upon which the ministers know little or nothing. I think that, in most cases, the ministers and consuls have very little to do with each other, and should the Department of State decide that these consular reports should be transmitted through the ministers, there will be friction which will be damaging to 4rade, instead of promoting it. D. Mayer, Cons id- General. Buenos Ayres, October 21, 190 Jf. ROSARIO. I have the honor to acknowledge the receipt of circular, i; Promo- tion of trade interests," and asking for my views. In common with all Americans who hold their country's com- mercial leadership to be of the greatest national importance I have taken deep interest in this subject, and during my consular career have, to the best of my ability, worked for the promotion of such leadership. From my point of view, I have arrived at some decided views and conclusions which, under this comprehensive instruction. I shall undertake to express as briefly as possible. I shall not reply to the questions in detail, as propounded to the diplomatic officers, but treat the subject as it applies to my district. My consular district embraces eight provinces (States) and four gobernaciones (territories) of the north and northeast of the Repub- lic, having a population almost exactly half of the entire Republic and a productiveness more than equal to the balance. My consular office at Rosario is in the southeast corner of this vast territory, and there is railway communication with but a limited portion of my district, so that intercourse with the remoter portions is slow and uncertain. Every portion of my district teems with wealth, much of it. especially in the mining and timber regions, as yet undevel- oped; but when the developing power is brought to bear the result will be the enrichment of the persons who engage practically and energetically in that work. The people who inhabit this region, both PROMOTION OF TRADE INTERESTS. 191 the near and the remote parts, are not, generally speaking, producers, except through the agricultural and pastoral industries, which are followed as yet in anything but a thoroughly productive manner. The people must, therefore, be fed and clothed and housed from the products imported from foreign lands; their fields must be tilled, and their crops harvested and carried to market with appliances from somewhere abroad. With their little labor and their inefficient management, so rich is their soil that they still have for market enough and to spare to bring to their coffers gold for all their wants, and this wealth goes to that nation's representatives who can supply their wants to suit their peculiar tastes and will take the trouble to furnish them as required. Of the nations whose representatives make special effort to do this, Germany stands clearly in the front rank, with England, France, and Italy following more or less closely, while, I regret to say, our coun- try, as yet, occupies an inconspicuous place. There are numerous reasons for this. First of all, the most successful of these caterers to the Argentine wants send personal representatives, who go to all the principal towns and villages, speaking the language of the country, and never failing to book extensive orders with the most reliable wholesale dealers in these places, taking care to take orders only from merchants of undoubted financial reliability, to whom they freely give long credits of six, twelve, and eighteen months. One of these agents told me that in ten years their house had not lost a dollar in bad debts in the Argentine. This is in one line, and the same holds good in all other lines: and this success follows such persistent per- sonal effort, even when the goods are of an inferior quality and the prices are but little less than those of much better grades from other sources. There is one line alone in which America leads all the rest, in qual- ity, effectiveness, and sales, and that is in agricultural implements. They are universally recognized as the best, and the large importers and dealers are compelled to buy them in great and increasing quan- tities, because they are the best, and notwithstanding the discrimina- tion against them in the matter of terms of payment. One dealer told me that it was not uncommon for him to pay a draft for thou- sands of dollars for American machinery before he had seen a piece of it. While this shows a confidence in our manufacturers by the dealers, it shows, in reverse, a lack of it in the dealer by the manufac- turers, and, therefore, the dealer is tempted to substitute another machine when he can, regardless of quality, and, I submit, this is subversive of our trade interests. Now there should be some way to smooth out, to a very considerable degree, these rough places. There should, if possible, be some closer bond between our American merchants and manufacturers and the consumers and their representative middlemen in this country, and to thereby increase and strengthen our trade here. I presume this is the problem to be solved. How can it be done ? Primarily. I should say, by those people in each line in the United States forming a " combine ? ' and securing, at a liberal salary and a liberal allowance for daily expenses, a man who will travel, step by step, from city to city (or- town) all up and down the land — a serious man (to use a native idiom) — speaking the language, with practical 192 PROMOTION OF TRADE INTERESTS. familiarity with the line of goods he represents, and with ability to engage to make for the purchasers such goods as they want and put them on their counters in such shapes as they are accustomed to, and to sell them good, fresh articles and not put off in the South American market any old shopworn remnants, and to be shrewd enough to ascertain the financial standing of those to whom they sell, and to be liberal in their tiine as well as prices. With such continued and per- sistent effort, Argentine trade, in any line, in -ay be won for America, for back of all sentiment American goods, other things being equal, are liked better than any others. A corporal's guard of such men, representing the leading lines of goods, meats, dry goods, canned goods, and fancy groceries, boots and shoes, hats and caps, underwear, rubber goods, etc., would undoubtedly work a revolution in American trade here, and a revelation to our European competitors. A great reason for the large consumption and adoption of American farm machinery in this district is that those manufacturers are entering systematically on their sales, and work much on the lines I suggest, with results that are doubtless in the highest degree satisfactory. So much for strictly mercantile work in the development of trade. As to how such work might best be furthered by official agency of diplomatic officers and consuls, permit me first to point out the dif- ficulties under which a consular officer, situated as I am, labors in endeavoring to discharge such duties : As I have indicated, my office is in one corner of a large district, and I am compelled to be there during the business hours of each business day in the year, and I am not able to absent myself for even twenty-four hours to visit any out- lying towns or villages or any of the splendid farms, of which I only learn indirectly, but my time is exclusively given to work that could well be done by a competent clerk. If one were allowed me I could have some time in which to gather the facts that I am constantly expected to furnish, by the multitudinous correspondents, regarding addresses of firms engaged in their several lines, the prospects of trade, and a thousand and one particulars that could only be gathered, if at all, from the proprietor, whose hours at the office are the same as mine in this. There is no city directors 7 for Eosario, else this part of my correspondence would be facilitated. When, however, I am requested to name the principal firms in my consular district in a special line, which is a quite usual request, you may imagine with what a task I am confronted. A way. and a feasible way, in my opinion, to ascertain many of the facts requested of consuls, is, as suggested by your circular, to have at our legation a " commercial attache," a part of whose business it would be to gather commercial data of all sorts and in all lines, and on application by the consuls, furnish them with the bare figures, on which they could base a courteous and satisfactory reply. This attache, armed with his diplomatic commission, and with the indorse- ment of the Argentine Government, could, going from place to place throughout the Republic, satisfy himself of the commercial condi- tions at each place, which he could hold for the information of not only the consuls of the respective districts, but of the representatives of American houses taking orders throughout the country. He would also have direct and easy access to all statistical information in the different departments of this Government, which avouIcI, on request, PROMOTION OF TRADE INTERESTS. 193 be transmitted by him to such consuls as desired to avail themselves of it for their reports. Certainty this position, ably and properly filled, would be no sinecure, for, in addition to the above line of work, he could, and should, ascertain throughout the Republic possible or prospective developments of the natural resources of the country, keep himself abreast of all new enterprises in process of development, in order that interested firms in the States could be in early with bids for supplies of machinery, equipments, etc. ; ' note specifically all improvements of lines of commerce, and be the trusted officer of our Government, fully equipped with information, to whom possible investors might confidently look for reliable data. This is, in my opinion, the practical plan to promote that which we all desire — our trade interests in Argentina. With regard to the cooperation of the consular with the diplomatic officers, I will answer for this office that, as long as it is under my control, I shall work willingly and to the best of my ability for the furtherance of this object. I will do so with the brightest hopes of the success of the effort which the Department seems to have in mind. James M. Ayers, Consul. Rosario, September 17, 190 1^. BOLIVIA, Report from Minister Sorsby. Legation or the United States, La Paz, Bolivia, September 15, 1901f. Referring to the Department's circular of July 29, with respect to the " Promotion of trade interests," I have the honor to report : First. In my opinion it would be entirely practicable, as well as highly desirable, to transmit to consular officers instructions from the Department of State from time to time for particular inquiries; to make in the dispatches of transmission such suggestions as may be pertinent to facilitate the inquiry, or to make it more comprehensive ; to revise their reports, and to furnish supplementary information when a report or series of reports appeared to be defective or mis- leading. Second. There is no such cooperation as that outlined in the circu- lar between the diplomatic and consular officers of Bolivia, nor does the Bolivian diplomatic and consular service provide for commercial or industrial attaches. In my judgment, such attaches would be of material advantage to American commerce. Third. No special additional increase in the personnel of this lega- tion would be required to intelligently and effectively carry out the programme indicated by the Department's circular. An addition of $500 per annum to the present contingent expense allowance for the item of clerk hire and the designation of the clerk as " attache " is all that would be required. William B. Sorsby. H. Doc. 245, 58-3 13 194 PROMOTION OF TRADE INTERESTS. BRAZIL. Report from Minister Thompson. A copy of your circular letter to diplomatic officers, under date of Jury 29, has been sent to me here. In answering your questions I respectfully submit : 1. All that is suggested could be done bv the minister in Brazil, without embarrassment to the minister or his position. 2. There is, at this time, no cooperation between the legation in Brazil and the consular service, except occasional necessary letters. 3. No additional assistance would be necessary if the legation has an efficient and willing secretary. I think my only suggestion in entering upon this new plan of car- ing for important commercial matters, if it is finally decided to make a change, is great care in selecting consuls, especially consuls- general — care that the}^ should be worthy and efficient. All that your letter suggests as desirable could be clone efficiently, satisfac- torily, and without added expense I would think, not only in Brazil, but in all countries, unless a commercial agent is thought best, in which event, the added expense of this one man would be ali that is necessary. It might be desirable to make the consul-general to a greater degree than now responsible to the minister. It would seem desirable also that a commercial agent, when one is assigned to any country, should have an office with the consul-general and report to him. D. E. Thompson. Opinions of Vice Consul-General. Replying to the Department's circular of August 4, requesting an expression of views on the circular " Promotion of trade interests," under date of July 29, addressed to the diplomatic officers of the United States, I have the honor to make the following observations : The greatest obstacle to the satisfactory collection of trade infor- mation is not secretiveness on the part of the authorities who, in Brazil, are, with rare exception, ready to extend their courtesies to ministers and consuls without distinction, but the lack of a uniform system of official published statistics. Although the Brazilian statis- tical department has made rapid strides in the last four years, large gaps still exist in the system, which put consuls who are called upon to report on some one branch of industry to a severe test. In such cases the consul must fall back upon primary sources, and his success depends upon the extent of his friendly relations with some promi- nent merchant, manufacturer, or local head of a government tribu- tary branch. In gathering information of a still more detailed character, such as is demanded for replying to the very numerous letters from American manufacturers who are interested in but one line, the ability of the consul is limited by his office force. If he is without some person whom he can send during business hours to a Forwarded from Lincoln, Nebr., November 11, 1904, Minister Thompson being absent from his post, on leave. PROMOTION OF TRADE INTERESTS. 195 interview personally a large number of representative importers or exporters, he is helpless. It will be seen that, for the above classes of information, nothing is to be gained by making the legation the channel of inquiries, nor do I think the Department's circular presupposes such a change. On the other hand, information as to the economic conditions in- the larger sense, such as might be applied for through the legation, is being published as fast and as exhaustively as the Government can collect and organize data. Furthermore, consuls are, in general, sub- scribers to the official daily which gives verbatim the discussion of almost ever}' project in Congress, through every stage, until it becomes law. Consequently such information as would be obtained through application by the legation can usually be found in some printed form. The legation depends upon its legitimate prestige for obtaining information, and its inquiries are carried on with a necessary for- mality which, in many cases, makes dispatch impossible. In Brazil, friendship will invariably do more than authority, and a call on an acquaintance in a government office will often get information in an hour which it would take a month to get through correspondence which follows the rounds of red tape. The submitting of commercial reports from consulates to the lega- tion offers a doubtful advantage at best. In a country of such vast distances as Brazil, the minister is dependent on the consuls for his knowledge of their several districts. Xo tours of inspection can qual- ify him to rectify the impressions of a resident on local conditions and issues, and in the many cases where the Department calls for simultaneous reports from the different districts, reference to or through the legation, owing to the sporadic and dilatory mail service and the intervals of thousands of miles, would cost a delay of from one to two months, in itself a disadvantage which would eliminate probable gains. Leaving negative considerations, the elements which seem most susceptible to development in securing for the United States an un- rivalled instrument of trade expansion in its foreign service are — the employment of officers capable of winning personal recognition and the enlargement of the consular subforce. A consul who will take the trouble to make friends with the Brazil- ians will soon find that the antagonism so constantly fed in little ways by a portion of the press is eliminated in personal contact. As noted above, this relation is far more effective in gathering information than authority, and for two reasons: First, it avoids official formal- ity ; second, it allows of dispatch, thoroughness, and a real knowledge of the condition of things as opposed to the officially announced or nominal state of any given matter. The line drawn between diplo- matic and consular prerogatives in this country is so indistinct that a consul is rarely, if ever, hampered by a question as to his right to make inquiries. The inadequacy of the consular subforce in Brazil has been brought to the attention of the Department with an insistency which should go far to prove the weakness of this point in the service. In the last few years, the constant appeals have met with a response, but a response so badly proportioned to the growing needs of the several districts that the American consular officers, who meet or try to meet 196 PROMOTION OF TRADE INTERESTS. their obligations, have gained the reputation of being the hardest worked and poorest paid members of a large consular corps. The usual allowance for clerk hire in our consulates is barely enough to secure the services of some American temporarily out of a job, who is sure to have an offer often at double the wages as soon as he proves efficient, or of some second mate left by an American ship. Yet this clerk is called upon to speak, read, and write two languages, keep books, fill out invoices, bills of health, etc., typewrite reports, and interview merchants, or represent the consulate to visitors while the consul goes out to gather information. If the clerk can not fill these requirements, the consul is forced to spend many hours hammering out his reports on the typewriter or balancing up the daily cash. As a result, many important letters from American manufacturers go unanswered, and if the facts were known, many sins of omission would be forgiven the consul whom such circumstances have forced to write : " August 10. Eeplying to your favor of March 6, I am sorry to say that the proposed factory to which you refer is already built and turning out shoes." The Americans are the only consuls who subject themselves to arduous clerical work, and, if the results have merited the Depart- ment's approval, they only go to show that were the several consulates equipped with a subforce able to cope with the daily volume of work, the misplaced energy of the consular officers, turned to its proper channel, could effectively prevent the occurrence of the serious omis- sions in reports noted by the Department. Salaries paid to the American consuls and the sums allowed them for securing clerical aid are a constant surprise to those acquainted with the compensation and working force of our colleagues. No better example can be offered than a statement of the conditions in this port. The British consular force here is composed of a consul- general, a vice-consul-general, a j)ro-consul-general, a first clerk, and a second clerk. This does not take into account the messenger or office porter. Opposed to this force is that of the American office, composed of a consul-general and a vice and deputy consul-general, who is also clerk. There being no regular remuneration in the offices of vice-consul-general and deputy consul-general in our service, as there is in the British, it is very hard to get anyone to assume these responsibilities, even when it is understood that no work is required of him but the signing of his name. It is a well-known fact that the commercial relations of Rio de Janeiro with the United States are greater than those of any other port in the whole of South America, yet the equipment that our Government offers this office is such that, during the temporary absence of one officer through sickness or leave, the other is called upon to fill out invoices at the rate of over a thousand a year, keep strict and complicated accounts, compile such reports as do not require absence from the consulate during office hours, do his own typewriting, hear and act on constant complaints of sailors, answer local communications written in three or four lan- guages, legalize signatures, make out powers of attorney, furnish information to frequent callers, and snatch a few moments, when pos- sible, to reply to a voluminous, and sometimes urgent, correspondence. Even if funds allowed, he could not employ for a short period a helper capable of aiding him in duties so varied and requiring some experience. PROMOTION OF TRADE INTERESTS. 197 The part of the work which suffers most is the heavy correspond- ence from American firms, lawyers, etc., which, according to Consular Regulations, is left for such time as is not allotted to other duties. Yet these correspondents would be willing to pay, and pay well, out of their own pockets if only they could be assured prompt attention. Many of these letters seeking agents, referring to estates in liquida- tion, inquiring as to property claimed by Americans, determining decease of heirs, etc., are of vital importance to the senders: but although this may be realized by the consul, he is often helpless, as such letters require investigation that can not be carried on from the office chair. To the vast number of Americans whose interests are constantly growing in foreign countries, a general strengthening of the consular force, such as would enable it to take up these numerous threads of private enterprise and make them the forerunners of a general com- mercial expansion would be a legitimate and praiseworthy object of official expenditure. There is no country which at present has greater need of or could better afford efficient foreign representation than ours, and the importance of the vast, semideveloped field of South America, especially of Brazil, whose needs cry out for American man- ufactures of every description, well deserve generous and immediate attention. George E. Chamberlain, Vice and Deputy Consul- General. Rio de Janeiro, September 16, 1904. Opinions of Consular Officers. BAHIA. The ideas expressed by the Department in circular " Promotion of trade interests," contains many good points. In discussing the matter in so far as Brazil is concerned, I can see that a system as outlined and with a proper commercial, or rather statistical man in charge, would be a benefit, in that statisti- cal information could be arranged so as to be up to date instead of being from two to three years behind, as is now the case. The plans as proposed present two phases. On the one hand, in a country as large as this and differing so materially in each consular district, and even in each section of a district, it would be next to impossible for anyone stationed at the capital to be thoroughly cogni- zant of the conditions of the different districts and to be able to indi- cate or correct errors of fact or judgment any better than could be done at the Department had the information been sent direct. Reli- ance would still have to be placed on the different consuls to furnish the detailed information as to their respective districts, while the roundabout way suggested would cause much time to be lost because of the irregular mail and transportation service. It is a fact that from some places in Brazil the information could reach the United States more quickly than it could get to Rio de Janeiro, from which it would require another long journey to reach the Department. On the other hand, if our reports were first submitted to our diplo- 198 PROMOTION OF TRADE INTERESTS. matic representative at the capital, it would give him a more compre- hensive idea as to the different districts, and, as stated by the Depart- ment, would enable him to call attention to such things as, in his judg- ment, might cause offense or embarrass him in his diplomatic capac- ity. If after all the full reports of the consuls are to be finally sub- mitted to the Department and there passed on in the light of the annotations, with the facts of the prior paragraph in mind, and leav- ing aside the loss of time, it would seem that some good might come of such a system. I take it that the conditions in Brazil, at least in so far as this dis- trict is concerned, are different from those existing in most foreign countries. I am aided by city, state, and federal representatives in gathering such information as T may wish, and it is within their power to furnish, whether requested officially by letter or obtained in person. Our minister at Bio de Janeiro could procure no informa- tion here which would not be given as freely to me, upon request; in fact, I am frequently allowed to see official information which most likely he could not obtain. How much of the personal equation enters into this fact I do not know. What I do know is that I am able to get more information than any other consul here located, doubtless because I have studied the matter sufficiently to know where and how to get it and go to the proper source. I should think that collection of trade information at the legation would necessitate unnecessary work which could better be performed by the consul-general and his staff, who should be more in touch with commercial matters. The fact that the minister is on the ground to request such official information as may be desired would seem zo me to be sufficient to overcome such difficulties as might arise. My solu- tion of the problem would be the appointment of salaried vice-consuls at the more important centers, thus relieving the consuls of the purely routine work which now takes up the greater part of their time. This would give time for the study of trade and trade relations. Another solution would be the assigning of the commercial expert to the consulate, unless his attachment to the diplomatic branch of the service would give him diplomatic privileges; that is, power to request such information as he may desire without the aid or assist- ance of the minister or ambassador, and even then it would seem that he, should, in reality, work with the consulate. H. W. Furniss, 'Consul. Bahia, November 12. 1904. PAKA. I have the honor to acknowledge receipt of circular, " Promotion of trade interests." This circular evidently has in contemplation conditions obtaining in the older European countries. That a modification of the plan outlined would prove valuable and effective in the Latin- American republics of Central and South America is highly probable, but modi- fication would be necessary. The value of statistical and other trade information diminishes in proportion to the delay incurred in making it public. It would seem likely, therefore, that a strict adherence to the proposed plan that consular officers should send their reports PROMOTION OF TRADE INTERESTS. 199 through the legation in order to permit of revision, annotation, etc., would cause such great delay as to lower the value of the final report. I doubt whether the supposed greater accuracy of the report would compensate for the waste of time. Take, for example, this consul- ate : It takes longer for a letter to reach the legation in Rio de Jan- eiro than it does to reach the Department of State. The average time may be taken at three weeks, at least one week for revision and a month more for the revised report to reach the Department; as against about eighteen days if the report should be sent direct. In these countries, too, I vary much doubt if the diplomatic officer would really be able to " indicate errors, of fact or judgment," par- ticularly the former. Take this country for example, although I believe the argument is as applicable to Uruguay or Honduras : The trade, the products, the social and business conditions of Amazonas and Para are as distinct from those in. Minas Geraes, and both from those in the southern coffee-producing States, as are similar condi- tions in France, Italy, and India. My own consular jurisdiction covers a territory that extends for thousands of miles, nearly to the foot of the Andes. With a verj^ good working command of the lan- guage of the country, with many years of life and experience in the Tropics, I find it exceedingly difficult to obtain " facts " concerning this vast region. If I can not do it, having nothing else to do, how shall a diplomatic officer many thousands of miles away, and with a multiplicity of interests, be able in a necessarily hasty revision to "indicate errors of fact?" I believe that the same objection lies as to the necessity for elimina- tion of "portions — likely to give offense or cause embarrassment" — to the diplomatic officer as such. Granting that the valuable and im- portant aim of the proposed plan should be largely attained, it seems probable that, in the countries to which I refer, the diplomatic officer would be almost compelled to examine consular reports submitted for his revision, etc., with a distinct bias toward his diplomatic status rather than as being in the position of editor of a trade journal which, indeed, is the nearest analogy to the position the plan contem- plates his assuming. While provision is made to preserve the " spirit of initiative " by a final revision and decision by the Department, it would seem to be unavoidable that in practice the revisions, annota- tions, eliminations, etc., of the diplomatic officer would be adopted by the Department, for several reasons, viz, the dignity of the officer, the assumption that he possesses the knowledge and ability to make these corrections, the lack of time and of data for the Department to make due investigation and decision. Otherwise, such comments would cease to have value, and the diplo- matic officer would either simply forward reports or perform the revision in a necessarily perfunctory manner. In either case, the only result attained would be useless delay in the publication of the reports. At the same time, I believe that, if provision can be made for corre- spondence on such subjects directly with the legation, without giving offense to the consul-general, most valuable results can be attained. Again, taking this consulate as an example, it is absolutely impossi- ble to procure statistics of imports into this consular district. Such statistics are prepared, it is true, in the custom-house, but they are forwarded to some central office at Eio de Janeiro, where similar sta- 200 PROMOTION OF TRADE INTERESTS. tistics are received from all the States and only general tables of im- ports for the whole Republic are published. These statistics, thus unattainable by me, could, no doubt, be readily obtained by the lega- tion at Eio. In my opinion, the legation should, therefore, invite from consuls statements of what matters are not obtainable by them, and should supply such deficiencies directly to the Department. On pub- lication of the reports received from the legations, copies should be sent to all the consuls of that country for their information. How can I answer queries regarding the best way of selling American manufactures, e. g., of cotton prints in Para, when I can not get any idea, at all accurate, of the actual gross imports of cotton goods into this district, to say nothing of detail by countries ? The modification that I would respectfully suggest would be this: That the consuls should be both empowered and instructed to commu- nicate with the legation, whenever they should find themselves unable to obtain facts, data, or information which it was possible the lega- tion could obtain. According to the importance of the matter asked for, the legation might either inform the consul, or report in extenso to the Department, copies of these reports being afterwards sent to all the consuls of that country. The " spirit of initiative " would thus remain with and be fostered in the consular corps, and the " friction," which the circular evidently foresees, would be entirely avoided. There is a vast difference between the mandatory request sent out by a diplomatic officer to a consul and the respectful request of a consul to a diplomatic officer for information which the consul knows he needs. The mere possibility of criticism by an officer, whom the con- sul can not believe to be possessed of as much knowledge on the spe- cial subject as himself, would act rather as a deterrent than as an encouragement to make difficult and laborious investigations and then reduce these to writing. But it would be a very decided encourage- ment if the consul knew that he could apply to the diplomatic officer for such information as he, the consul, could not get and the diplo- matic officer could. Each would then be concentrating his energy on the facts and phenomena under his control, and their joint work would be of real value. Under the proposed plan, either the diplo- matic officer must, theoretically, possess full and final knowledge, or the resultant, revised report will have merely a doubtful and contro- versial value. Since the Department has honored me by requesting an expression of my views on this subject, I desire to most heartily and thoroughly give my adherence to the suggestion of the creation of " commercial or industrial attaches " to our Central and South American legations. I shall speak for Brazil only, although I am convinced that the argu- ment holds good for every Latin -American country. Brazil is natur- ally our market, but we are not in possession of it. I am inclined to believe that the excellence of our manufactures is causing a small, slow, increase in our trade. This increase, thus made, is most valuable because, from its nature, it is permanent. But it is small. Germany and England hold this market. For years and years, German mer- chants have been gathering commercial information here. They know every tiniest detail of law, regulation, custom, local and indi- vidual, affecting trade. They conform to these. Before we can capture this market, Ave must know it as thoroughly. We must study its conditions, enviromnent, phenomena ; treat it as a scientific prob- PROMOTION OF TRADE INTEREST . 201 lem to be resolved on purely scientific lines and by scientific methods. Then consuls will not receive, as I here, under the equator, have received, letters with expensive catalogues accompanying them adver- tising heating stoves and asking " when do you have cold weather in your country?'' A commercial attache, speaking the language of the country to which he is sent, acquainting himself thoroughly with the commercial legislation of the country, traveling all over it, and learn- ing the various State commercial codes and procedures, personally interviewing and working with consuls in their districts, pointing out to them fields of inquiry and methods of study; such an officer would be of simply incalculable benefit to our country. He should be given diplomatic status, if possible, in order that he might readily obtain from State governors immediate attention and respect. In general, I believe the plan outlined in the circular to be one of the most important in its effect upon the efficiency of the consular corps in the history of that corps. There is a modern tendency to consider consular officers as mere " commercial agents." Undoubt- edly they are such, for the most part. But such a close alliance between the diplomatic and consular bodies of the United States, in the interests of commerce, would go far to elevate the " commercial agent " to a position of such dignity as anciently attached to the title " consul." This in itself would be a renewed incentive to all consuls to do the best work that was in them in this direction. The knowledge that the high diplomatic officer was a coworker in this field with him would spur him on to greater efforts. Consuls are, however, very jealous of any other control than that of the Depart- ment itself. Consuls-general and their supervision are a part of the Department, but any sort of control by officers even of the rank and dignity of ambassadors might be irksome to and misunderstood by consuls. If it can be arranged and understood that consuls can apply to the officers of the diplomatic corps when they find their own per- sonal efforts insufficient, with the certainty that their needs will be understood and' appreciated, that the diplomatic officer is himself, in his field, working to the same end, and that there is no question of new superiors to be consulted and obeyed, I believe every hard-work- ing and patriotic consul in our service will heartily welcome the plan. Louis H. Ayme, Consul. Para, October 4, 1904. SANTOS. In reply to the request to give my views in regard to a plan for the cooperation and improvement of existing facilities for the collection of commercial intelligence and the promotion of American trade interests abroad, I have to say that I am of the opinion that the exist- ing facilities for collecting information would be greatly benefited if the diplomatic officers and the principal consuls could work in con- junction. It is often very difficult to furnish a satisfactory report on the commerce and industries of a country, and certainly every avenue should be open to consuls. A majority of the consuls are poor men and can not afford to employ some one to travel over the district in search of information, and they can not neglect their offi- cial duties and go themselves. Consuls, in my judgment, should be 202 PROMOTION OF TRADE INTERESTS. better paid. Our country gets more information for less money than any other country. If consuls could confer with the legations "freely, results would be more satisfactory. J. H. Johnson, Consul. Santos, October 16, 1904. CHELE. Report from the Legation. Legation or the United States of America, Santiago, Chile, October 15, 190 If. I have the honor to acknowledge the receipt of Department's cir- cular of instruction of July 29 last, entitled " Promotion of trade interests," and to report as follows : I entirely agree with the general idea of the circular, viz, that our diplomatic service could and should be brought into closer and more active cooperation with our consular body in the collection of com- mercial and industrial information. Here in Chile, however, the cooperation suggested by question 1 would not be altogether prac- ticable. Our consulates are strung along the coast at various ports between which there is no railroad communication. All mail from the United States comes by steamer from Panama. An instruction intended for our consul at Arica would reach him three weeks sooner if sent to him direct — i. e., if put off there on the steamer's southward trip, than if directed to the legation and then sent north again. The same would be true, to only a slightly less extent, of instructions intended for our consuls at Iquique and Antofagasta. TTere the con- sular officers at these three posts to transmit their reports to this legation for revision, a second serious delay would be occasioned. Yet in this country, the cooperation of the legation is especially desirable, not to say- necesary, for the reason that the Government is highly centralized. All provincial officials are Federal appointees and directly subordinate to the various administrative departments at the capital. The whole industrial and commercial life of the country really centers here in Santiago. The semiofficial organizations, such as the Xational Agricultural Societ} 7 ', the National Miners' Associa- tion, the Commercial Association (Fomento Fabril), etc., are located here. Here many of the great business houses have their head offices, and all are represented. It is obvious, therefore, that the bulk of the work of collecting commercial and industrial information in Chile would fall on the legation, whether it were supposed to act in an advisory or revisory capacity, or to report independently of the con- sulates. I should, therefore, advise that, whenever the Department desires trade information of a general character, it should rely pri- marily on the legation, instructing the consulates, at the same time, to prepare independent reports from such sources of information as they respectively have at hand. This method would not preclude the legation's asking information of or giving it to any or all of the con- sular officers should it seem expedient. As regards question 2. There is at present no such systematic cooperation as that under discussion between the consular and diplo- PROMOTION OF TRADE INTERESTS. 203 matic services of Chile. Nor has Chile any commercial or industrial attaches. A project will be presented at the extra session of Con- gress, just beginning, for the establishment of a consular section in the department of foreign affairs, and this project, I am informed by the minister of that department, aims also at a systematized coor- dination and cooperation between the various consulates and between the consulates and the legations. Commercial attaches would, in my opinion, especially in capitals where we have no consul or consul-general, be useful for the United States. Even in capitals where we have a consular officer, they would be desirable, in view of the limitation upon the consular service in obtaining official information at first hands, pointed out in paragraph 3 of the Department's circular — viz, its lack of diplomatic status. I would answer question 3 by advising the addition of a commercial attache to the personnel of this legation. Were both the minister and the secretary of legation always here, they could satisfactorily attend to the collection of such general commercial information os might, Avith likelihood, be desired, but in the absence of the secretary, the minister, and, in the absence of the minister, the secretary, as charge d'affaires, would have little opportunity for the preparation of thorough and authoritative reports. An attache, who could devote his time to commercial and industrial matters only, could keep well occupied. There are many activities here, reports on which would be interesting and profitable. Moreover, the attitude of Chileans toward our country and people is every day more cordial ; they look forward with sanguine expecta- tion to the closer relationship, commercial and otherwise, that the Panama Canal will bring about. One hears much talk and reads much in the newspapers of the great benefits Chile will derive from direct steamship connection with the United States and a shortened voyage to Europe. To us, also, the opening of the Panama Canal should mean a distinct commercial gain in Chile, as in all South America. But to compete successfully with European nations in this market then, we must make an effort to secure the market now. We should study it carefully, giving attention rather to its demand than to our supply. In a commercial report, which I had the honor to send to the Department from Buenos Ayres, last December, I called attention to the difference between German and American methods of securing trade there. I can not too strongly recommend our adop- tion of German methods here, and I believe the appointment of a capable commercial attache would be a long step in the right direction. Edward Winslow Ames, Charge. Opinions of Consul Green. ANTOFAGASTA. I beg to say that, in my opinion, joint action of diplomatic and consular officials will certainly favor commercial interests, as the diplomatic officers, being near the Government, will be able to often secure earlier statistics. The great difficulty is found in the long delay of statistical offices in publishing the yearly reports. For example, at present, we have the Estadistica Commercial for 1902, 204 PROMOTION OF TRADE INTERESTS. and a copy was duly supplied to the Department. We have no infor- mation as to when we can expect that for 1903 ; and the only reliable statistics are those found in the official publications. To obtain even a regular monthly statement from the statistical employees would involve a large expense not provided for. For my own part, I lose no opportunity to do all in my power to help trade. A-ntofagasta, Chile, September 28. 1904. C. C. Green, Consul. COLOMBIA. Report from the Legation. American Legation, Bogota, October 5, 1904- Eef erring to Department's instruction of July 29, relative to the promotion of trade interests, I have the honor to say that I believe some arrangement along the lines indicated in this circular highly practicable, and that it would prove a powerful aid in the work of furnishing our manufacturers and exporters with valuable informa- tion, at times impossible, almost, for our consular officers to obtain without great trouble and delay. I can recall several instances here when, answering Department circulars, I was greatly aided in my search for information by the diplomatic character I enjoy, and have often thought that some such arangement as the one under discussion would fill a long-felt want. As to the questions asked in this circular, I think it not only prac- ticable but beneficial to carry out question 1 in every particular. As to question 2. there is no such cooperation as that outlined in question 1 between the diplomatic and consular services of this coun- try, nor does the Government have any commercial or industrial attaches. I do not think conditions or business are such as to justify the presence of commercial attaches in Colombia at present. The system of commercial and industrial attaches is an excellent system and certainly ought to be adopted by our Government, but on the order of the English method — viz, the presence of those attaches at the seats of the most important governments, commercially and otherwise. The time may come when their presence here will be beneficial. Under normal conditions, no additional assistance would be needed to enable this legation to carry into effect the programme described in question 1. Alb an G. Snyder, Charge. ECUADOR. Opinions of the Consul- General. In compliance with Department's circular, requesting an expres- sion of opinion as to the advisibility of the cooperation of the diplo- matic officer accredited to Ecuador in the supervising and gathering PROMOTION OF TRADE INTERESTS. 205 of commercial and industrial data, etc., I will say that such officer, being located at Quito, in the interior of this Republic, and away from the commercial center of activity, and with very poor facilities for cor- responding with consular officers, who- are all located along the coast, at the principal commercial cities, the only places where commercial intelligence can be gathered, is not in a position to add much to the machinery for collecting information as to business conditions in this Republic. This particular condition, however, does not exist in all countries, and it is certain that, in a great many localities, the diplomatic officer could render valuable service by aiding consular officers in gathering information of importance In Ecuador, the principal port, Guayaquil, is the commercial center having a large import and export trade, the custom-house, chamber of commerce, banks (4), revenue collect orships, etc. It is, therefore, the place where commercial and industrial information has to be gathered, and the only place in this Republic where such records are kept. It is apparent that the consular officer stationed at Guayaquil, is the proper official to supervise the gathering of such information as is required, or may become necessary for the advancement or exten- sion of our commercial interests. Should the consular officers, after gathering the desired informa- tion, transmit the same to the diplomatic officer, who, of course, would be stationed at Quito (the capital), 240 miles in the interior, for the purpose of having such report revised or corrected, it would be impossible for that officer to do so, as no bureaus of commerce and industry exist at the capital. The said diplomatic officer would be dependent on Guayaquil, in order to obtain such data as do exist. < For the reasons thus given, I would consider it of very little importance, if any at all, for the Department to first transmit instruc- tions to the diplomatic officer accredited to Ecuador, for the collect- ing of commercial intelligence, and for that officer to then retransmit the same instructions to the consular officers. Such a procedure, under the existing conditions here, would only tend to delay. If a commercial or industrial attache were stationed in this country, he would be of much more service and could do more good here in Guayaquil than if he were in Quito. Herman R. Dietrich, Consul-General. Guayaquil, September 15, 190If. GUIANA. Opinions of Consul Moult on. Regarding the promotion of American trade interests in foreign countries, I have the honor to state that, in view of the remoteness of the American embassies to the countries governing the colonies com- prising this consular district (British, French, and Dutch Guiana), it is presumed that, as a matter of expediency, official business of this consulate will continue to be transacted directly with the Department of State, and that my views concerning the improvement of existing 206 PKOMOTION OF TRADE INTERESTS. facilities, as suggested in the circular, would be immaterial. It is per- tinent for me to state that this office, during the experience of the present incumbent, has had no difficulty in obtaining, through the courtesy of the local customs officials, such commercial and industrial data as are required by consular regulations or Department circulars. It has seldom been necessary, in order to obtain information of that character, to correspond with the Government's secretary's office. Geo. H. Moulton, Consul. Georgetown, Guiana, August 30, 1904> PARAGUAY AND URUGUAY. Report from Minister Finch. Montevideo, September 16, 1904- I acknowledge the receipt of your circular letter dated July 29 last in relation to cooperation of the American diplomatic and consular corps as to commercial matters. You ask : 1. Would it be practicable for you to transmit to consular officers in tbe country to which you are accredited instructions from tbe Department of State from time to time, for particular inquiries ; nothing in your dispatch of transmission any suggestions that may occur to you, from your sources of infor- mation at the capital, which would facilitate the inquiry or help to make it more comprehensive or more exhaustive? Yes. If the consular officers should be directed to transmit their answers to such instrucions through you, could you undertake to have their reports revised, with annotations indicating errors of fact or judgment, or portions to be elimi- nated as likely to give offense or to cause you embarrassment in your diplo- matic capacity? Yes. 2. Is there such cooperation as that outlined above between the diplomatic and consular services of the country to which you are accredited? If so, describe it as fully as you can. Has the Government any commercial or indus- trial attaches? Would such attaches, in your judgment, be useful for the United States? The German consuls in Paraguay and Uruguay send copies of all reports deemed important to the German ambassador at Buenos Ayres. The reports are subject to his revision, and the consuls follow his suggestions and instructions. As to the utility of an attache, that would depend chiefly on the individual. He could be very useful. 3. What additional assistance, if any, would be needed to enable you to carry into effect the programme described" under question 1 ? If the consular force could be made available, no additional assist- ance would be necessary ; but if not, then some person who is compe- tent to gather and compile statistical and other information, examine records, and utilize suggestions would be needed, as this legation has no staff. William E. Finch, Minister to Paraguay and Uruguay. PBOMOTION OF TKADE INTEKESTS. 207 Opinions of Consul Ruffin, Paraguay. With regard to circular, " Promotion of trade interests," I beg to say that instructions from the Department of State could be trans- mitted from time to time to consular officers through the legation for this country, bat it would occasion some delay in sending the reports to the Department, owing to the nonresidence of the minister at this capital. However, the facilitating of information could be advanced considerably should the diplomatic officer transmit a letter through the consul to the foreign office requesting information to be handed (o said consular officer on the particular subject that is under inquiry by the Department. This letter could be presented to said office and information would be accorded fully through this official channel of the Government. This Government, however, has not been exacting of diplomatic ceremonies in acceding to the request of a consul since I have been here, which is about seven years. There is no cooperation here between the diplomatic and consular officers accredited to this country, as far as I know, otherwise than responding to the request of a diplomatic officer on the consul for information on some topic of special interest. Respecting the possible result of legislation by Congress to make the facilities of a consul for obtaining information more efficient, the French Republic has accredited to this Government a charge d'affaires, in whom is lodged all the functions of a consular officer. This enables him to gather all the information necessary without any difficulty whatever. France has no minister plenipotentiary accredited here. For this place, where there is no resident minister, and to avoid delays in the transmission of information, this method of the French Repub- lic would, perhaps, be advantageous if adopted by the United States. John N. Ruffin, Consul. Asuncion, Paraguay, September 30^ 1904. PERU. Report from Minister Dudley. Legation of the United States, Lima, August 31, 1904. I have the honor, in compliance with the Department's circular of instruction of the 29th ultimo, to submit my views concerning the coordination and improvement of the facilities afforded by our diplo- matic and consular services in Peru for the collection of commercial intelligence. Improvement will result all along the line, I do not doubt, in consequence of the interest so strikingly manifested by the Department through its circular. Coordination of effort between the two branches of our foreign service in this country, however, is prob- ably of less importance than in countries divided into several districts for the purposes of our consular administration. In Peru, there is but one principal consular officer of the United States, viz, the American consul at Callao. Under the description in his commission, so long as he remains the only principal consular 208 PROMOTION OF TRADE INTERESTS. officer of the United States in Peru, his jurisdiction extends through- out the Republic. Now, the tentative proposals of the circular are subject to the following condition: " It is to be understood that the Department would continue to communicate directly with consular officers as to matters pertaining exclusively to their districts." If so, all communications from the Department to the consul at Callao would be made directly, his district, or territorial jurisdiction, being the whole of Peru. The only American consular officers elsewhere in Peru are consular agents — subordinate officers not authorized to correspond with the Department. Lima and Callao are but 9 miles apart, and one effect of their prox- imity is that practically all general sources of information at the capi- tal and the port are equally available to the legation and the consulate. It is also to be remarked that the present incumbent of the consulate resides at Lima, as did his immediate predecessor. For these reasons, in the writer's opinion, it would not be advisable, even^if otherwise unobjectionable, to have this legation transmit to the consulate at Callao the Department's instructions, from time to time, for particu- lar inquiries, because, generally speaking. " the sources of information at the capital " are entirely at the command of the consul at Callao, through newspapers and other publications, and his daily personal intercourse. To meet the limitation upon the consulate, resulting from its lack of diplomatic status and possible inability to reach the proper minis- terial department of government for desired information, it is rec- ommended that the answers to special instructions for reports (together with a copy in each case of the instruction) be transmitted by the consul to the legation, to be forwarded after revision to the Department. Defects, if any that the consul might be unable to supply, might be made good by the legation with the assistance of the central Government, annotations of the character suggested in the circular added, and the consul's report supplemented at times with cognate information of interest. Of course, no additional assistance would be needed to enable the legation to carry this suggestion into effect. It is learned at the Peruvian foreign office that there is no such coop- eration as that outlined in the circular between the diplomatic and con- sular services of Peru, and that this Government has no commercial or industrial attaches. Such an attache in the writer's judgment would be of little use to the United States in Peru in view of the limited field for his activities and what should be, and it is believed is, the adequacy of existing official channels of information. Irving B. Dudley. Opinions of Consul Gottschalk. In reply to circular, " Promotion of trade interests," permit me to say after careful consideration that, while I am entirely in sympathy with the general idea of systematizing our foreign service, I believe nothing but harm can accrue from investing our legations with func- tions which by right would seem to be those of a consul-general. The plan proposed will to my mind considerably lessen the prestige and PROMOTION OF TRADE INTERESTS. 209 the working- usefulness on diplomatic lines of our legations. It may, besides, give rise to friction between legations and consulates situated anywhere in the immediate vicinity. I should also like to place upon record the fact that I have invariably found it detrimental to the consular service whenever a legation entered into correspondence with the consular agencies otherwise than through the consulate. In short, I have the honor to suggest that competent consuls-general are the persons to whom, for reasons of policy, of practicability, and of the general discipline of the service, the work in question should be intrusted. Alfred L. M. Gottschalk. Callao, Peru, October 8, 1904. VENEZUELA. Report from Minister Bowen. Caracas, Venezuela, August 20, 1904., In answer to your circular of July 29 last, in regard to the promo- tion of our trade interests, I have the honor to make the following suggestions : I. That the secretaries of our legations in Central and South America be made consuls-general. II. That they be charged with the special duty of securing infor- mation of a commercial kind, and of inducing the Governments to which they are respectively accredited to publish statistics and reports on trade and commerce. III. That the secretaries (consuls-general) communicate to the consuls under their supervision the information the}^ receive in order that the consuls may be better informed about the trade of the country and may become more efficient. IV. That the secretaries (consuls-general) be provided by the con- suls with copies of all commercial reports they make to the Depart- ment and with all other necessary data to enable the secretaries (consuls-general) to make general and special reports to the Depart- ment. V. That the salaries of the first secretaries of legation (consuls- general) be raised to $5,000 and of the second secretary to $2,500. The secretaries are underpaid. They can not live respectably on the salaries they are now receiving. Every legation should have a second secretary. VI. Any plan to make a minister plenipotentiary an expert consul would prove harmful to both the diplomatic service and the consular service. Herbert W. Bowen. Opinion of Consul Peterson. I beg to acknowledge receipt of Department circular, " Promotion of trade interests." The concentration of the compilation of reports or statistics relat- ing to a foreign country in the hands of a central authority, to be H. Doc. 245, 58-3 14 210 PROMOTION OF TRADE INTERESTS. found only in the diplomatic representative, should undoubtedly lead to a fuller and more comprehensive knowledge of the subject, and avoid or harmonize the conflicting views due to partial investi- gations on various sides, without proper collation or systematization. As suggested, the centers of official information could more readily be reached through the diplomatic representative, a difficult undertaking at best for the consular officer, as I gather from the correspondence of my predecessors. The plan proposed seems to promise increased efficiency in the col- lection of commercial intelligence and the promotion of American trade interests abroad, and should commend itself to both branches of the service as a means of further developing their importance and usefulness. As a consequence, the consular officer would realize more fully his responsibility as a factor in a systematized service, whose usefulness was not bounded by the limits of his consular district, and should thereby be stimulated to put forth his best efforts and pre- vented from taking narrow and contracted views as to the nature and results of his labors. Jerome B. Petersox. Puerto Cabello, Venezuela. August 23, 190J/.. ASIA. CHINA. Report from Minister Conger. Legation of 'the United States of America, Peking, China, September 23, 1904> Replying to Department circular of July 29, " Promotion of trade interests," I believe that much can, undoubtedly, be accomplished by the systematic cooperation of the diplomatic and consular services in gathering information relative to trade interests in China. Many inquiries are now addressed to the legation. More accurate and comprehensive replies could be made to these if some one were deputed to make inquiries by circular of all the consuls, and to digest and summarize the answers received. Consuls now make most inter- esting and valuable reports on many subjects, but many of them could be made more valuable by complementary reports from other districts on the same subjects. A more comprehensive view of any particular trade as conducted throughout the Empire could thus be obtained. Regular reports could also be arranged on special sub- jects, to be made at stated periods by each consul, and then could be edited at the legation. Peking is far to one side, and not being a port of international trade, the legation is very much out of touch with commercial inter- ests. This defect could be remedied by the method proposed. Com- munication is slow and difficult between the various provinces of China, and it might be best to have important 'inquiries from the Department addressed as now, directly to each consul, with instruc- tions to report to Peking, sending a copy, at the same time, to the Department, at least from the more distant consulates. PROMOTION OF TRADE INTERESTS. 211 Replying to your inquiries in their order : No. 1. With the assistance of a commercial attache, ves. No. 2. No. No. 3. The appointment of a commercial attache. Such attache should be a man of experience in commercial affairs, with special aptitude for the work. He should be familiar with China, its resources and customs, and, |)referably, able to speak Chinese. If not able to do so, he ought to be supplied with an inter- preter especially detailed for such work. Other Governments, notably Great Britain, France, and Germany, have such attaches. Those of Great Britain are men detailed from the consular service, and have had long experience in China, are able to speak Chinese, and give special attention to such investigations. The appointment of an untried man would be worse than useless; it would probably lead to unnecessary and annoying delays and confusion. Chinese industrial and commercial institutions are so unlike those of the West, and the conditions of trade so peculiar here, that one unfamiliar with them is apt to be misled and to make rash and untrustworthy generalizations. E. H. Conger. Opinions of Consular Officers. AMOY. I have the honor to report as follows in answer to your circular of August 4 : The plan of having a commercial attache would certainly be a good one. The usefulness of such a man would be in visiting the various ports and the interior tributary to those ports. Practically all of the information which can be had regarding foreign and domestic trade is available in any port where there is an American consul or a custom-house. Trade conditions differ greatly in north, central, and south China. It might be profitable to have three or more men to investigate trade possibilities in these districts. Attaches who work only in the ports open to foreign trade would but skim the surface. This province is one of the richest in China, with a population of 22,000,000. It is estimated that 10,000,000 of this population is tributary to Amoy. There are about 2,500,000 Amoy Chinese abroad. If each remits only $10 a year to his clansmen, it makes $25,000,000 part of which may be used in buying foreign luxuries and necessities. A commercial attache should investigate the interior, as he could thereby reach millions and ascertain their wants as against thousands only in the treaty ports. Valuable services could be rendered in the cotton-goods trade, for instance, by learning the length and width of the pieces in use in the district described. Also the mark or brand in general use. If the Chinese are accustomed to a bolt of cloth wrapped in gold-colored paper with a blue eagle on it, they want that, and anything else is considered an imitation and a fraud. These points may seem trivial, but they are of importance in dealing with Chinese. It might be suggested that the chamber of commerce in the vari- 212 PROMOTION OF TRADE INTERESTS. ous American cities interested in the export trade could assist in the work of pushing American goods in the interior of China by sending a representative to work with the commercial attache. The country tributary to Amoy alone offers a field rich enough to employ a man for a considerable time. The ordinary duties of a consul at this port prevent him from giving the work the time and attention it deserves. Johx H. Fesler, Consul. Amoy, October 4, 190 k* FUCHAU I have the honor to acknowledge receipt of the circular of August 4, 1904, relating to the " Promotion of trade interests." In complying with your instruction to give my views on the sub- ject presented therein, I may say that, with the 'understanding that consular officers should still make their full reports personally and directly to the Department of State, I see no objection to the scheme; but I should strongly object to have my reports go merely to the minister, to be swallowed up in a general report to be made by him, whoever he might be. I believe every consul should have full credit for all the effort put forth by him in obtaining information and transmitting the same to the Department. I believe, however, it would be for the good of the service that a copy of each report thus prepared should be sent to the diplomatic officer, and that he could, by the information thus given him, prepare a better report than is dow possible. I think this is especially true of China, where each consular district differs from all others in the Empire in some impor- tant particulars. No general report made by the legation could con- vey the local color of the several districts. What may be true of Canton may not hold at all in Amoy or Fuchau. All ports and con- ditions of trade, etc., in the south differ from those of the Yangtze valley and the north, and yet a general report for all China should be made from Peking, and the legation should have the reports from local districts to enable that office to make its more complete and general report. I have long been of the opinion that something similar to what is suggested in your circular should exist, and have taken occasion fre- quently to send copies of my reports to the minister at the same time that I mailed my report to the Department. I often feel like writing to the Department of matters of general character relating to trade in the country, political conditions, etc., as they appear to me, but have refrained because they refer more particularly to other districts, and I have supposed the legation would send such information, but in many instances have failed entirely to find any reference thereto in any published reports from the Department covering these things. My colleague, Consul Fowler, has frequently made such general reports, which I thought very excellent, but they appeared to me to belong rather to the duties of the legation or consul-general, and I have refrained from doing the same, though often tempted, because I did not like to assume the duties of these higher Government officers. I am of the opinion that an expert commercial attache, giving his PROMOTION OF TRADE INTERESTS. 213 whole time to investigations, in all parts of the Empire, visiting the several consuls and consulting with them and through them brought into personal contact Avith American merchants in all parts of China, would be a most desirable adjunct to the present system. He could compare methods of business as pursued in different places, and be able to make suggestions to the Department of Commerce concerning all trade conditions, which would be immensely valuable. Being located, as I am, at a provincial capital, I can avail myself of all the authority of the Viceroy and Tartar General, and other provin- cial officials, and secure through them advantages not obtainable by strangers. I can not therefore see that the minister could aid me much, except that, as he gathers information from other sources, he might transmit to us what might be very valuable. I have just recently received from our minister official information, rules and reg- ulations relating to mining, railroad construction, etc., for which I returned my thanks, and said, further, that I would be grateful if he would transmit to me promptly all regulations established by the central government relating to such things. Hitherto, no official information (or at least very rarely) has been sent to me from the legation, and I have only learned of them through the papers, or by applying to some of my colleagues, British, French, or Japanese, who always receive from their diplomatic representatives official copies of such regulations. Will the Department direct the legation to furnish the consuls with all such things promptly ? I am doing my utmost to promote trade in American goods in this district, but I am not able to obtain statistics showing what amount of American goods, machinery, etc., come to this district, owing to the fact that all such goods are first entered at Shanghai or Hongkong, and are only reported as coining from one or the other of those places, and not from America, England, Germany, etc. There are doubtless great opportunities for increase of trade just ahead of us in China. Samuel L. Gracey, Consul. FucHAu, September 17. 190. If. HANGCHAU. While I do not feel that my experience in Chinese matters has been sufficient to enable me to speak authoritatively upon the subject, it is plain to me that the slowness of communication in China demands heroic measures if trade reports from this country are to be what they ought to be. My newspaper experience and our way of collecting news from a great field incline me to the belief that there ought to be some sort of clearing house for consular news, some central point to which either the originals or copies of consular trade reports may be sent for correction or comparison and for the immediate information of other consuls in the same country. Such a central agency could naturally be of the utmost service in suggesting topics for considera- tion and investigation, and for directing, in some measure, the general course of trade reports. Probably a commercial attache at Peking could do this work better than an officer located at any other point, Much of his work, however, would have to be done in Shanghai. I believe that the connection between consular officers and the 214 PROMOTION OF TRADE INTERESTS. legation in China in trade report matters is not as close as it ought to be because of the fact that the consuls do not understand that they can get information for their reports from or through that source. With a commercial attache at Peking, this would certainly not longer be the case. Having a Government representative, with diplomatic status or connections to serve them and direct them in this line, the work of consuls ought to be more intelligent, more thorough, and more effective. George E. Anderson, Consul. Haxgchan, Xovember 3. 1904- NEWCHTTAXG. I have to acknowledge receipt of your circular of August 4, " Pro- motion of trade interests,'* and in reply thereto beg to say: So far as China is concerned, there is no question in my mind of the importance, value, and necessity of having a commercial head to the consular work in that line. As the work is now done, it is lack- ing in systematic method and effectiveness. Bequests are continually coming to me for information that could be answered by other con- suls, but not by me. People are compelled to work blindly, hunting for knowledge of Chinese industries, productions, and markets that could be provided promptly and well by a special industrial agent. This commercial or industrial agent should visit often each con- sular district, and become an authority on Chinese products, indus- tries, and trade. He should be familiar with each district and its special characteristics, and should have in his office complete infor- mation, well arranged and compiled, concerning everything of im- portance produced, exported, and imported. He should be provided with a good library suited to his work, and his office should be an industrial and commercial bureau of information on China. He should know where coal and all other minerals are to be found; he should know the silk districts, the varied agricultural and horti- cultural productions of each consular district ; and should be able to use the consuls in gathering this information, and through his work, it could be concentrated, compiled, and put into form to be utilized. The same work pertaining to commercial affairs could be organized under his direction. His office should also be the center of informa- tion concerning manufactures and dealers in the United States in things used in China. All industrial and trade reports should pass through his hands. The manufacturers in the United States are not familiar with the localities into which their goods in China finally go. They know little of the competition they must meet in these various districts, the taxes imposed upon these goods in various forms (usually differing in different localities ) . and a consul can only tell of these things in his own district. A general agent could provide the entire information for all and formulate it in practical shape. Y\ natever may be the plan designed for other countries, some scheme of this nature is especially required for China, because of the fact that China herself has practically no effective machinery for gathering industrial or commercial statistics and information, except PROMOTION OF TRADE INTERESTS. 215 the Imperial maritime customs service, and for such purposes as our industrial and commercial interests demand this is of no great value, and generally misleading. A general agent could well be a commercial attache and under the general direction of the minister, but his main office should be at Shanghai. Through the high officials in Peking, he could secure let- ters to the officials of the Empire that would give him access to the information he would require. It would also be of special value to his work to provide him with as high a rank as possible. In connection with this subject I beg to repeat a part of my trade report for Manchuria for 1901, forwarded you March 5, 1902, as follows : In closing this report, I desire to call the attention of the Department to the fact that the trade and production and diversity of extensive industries of China are little known to the world in general. Some man discovers something in one section, another in some other province ; a consul makes a hasty report on one subject, another on something else; but there seems to be no organized method for compiling in systematic form the mass of information that is dug out of the hidden and secret mystery of Chinese life. One of the dominating characteristics of the mercantile as well as the official and political life of China, is secrecy ; and when to this is added the feature of localities each having their own independent type of production, manufacturing, and trade, there is some explanation of the general ignorance concerning Chinese industries and their possibilities. Temporary commissions to investigate and report throw little or no light upon the internal life and trade as it is, or what it may be. The interest of the United States in China has grown to such proportions, and our future relations are sure to be so important, that we require a more perfect method of securing and compiling industrial and commercial knowledge of the Empire. The consular service is not accomplishing one-quarter of what it is capable if provided with some improvement in the system. A permanent and exclusively commercial and industrial head should be provided for the service, and located in Shanghai, and all the consular service work in these lines should be done under the direction of this chief. China differs very materially from other countries in these lines, as there are no national reports, methods, or organization for providing information of this nature. The revelations made at this port in the publication of native customs report are only an insignificant matter, as compared with the great industrial production and trade, of which the world knows so little. A permanent and capable officer of the consular service, with duties that give him exclusive direction over industries and commerce, and limit the functions of his authority to these lines, with headquarters in Shanghai, is to my mind quite essential for the proper expansion and protection of the indus- trial interests of the United States in China. Great Britain has a commercial attache, Consul Jameson, whose duties are of this character, and his office is located at Shanghai. Germany has a special consul detailed for the same work. Russia has a commercial attache, who divides his time between Peking and Shanghai. Norway and Sweden have a special commercial agent located at Shanghai. There can be no question as to the importance of such an official and the value of the work that can be done. Henry B. Miller, C onsul- General. Niuchwang, September 19, 190Jf. TIENTSIN. I have the honor to acknowledge receipt of Department circular ^*\ ^i£&* % / ' j" 0' ^ ^ //SI <* --/- ,f v 'o , ^ ^ ** --JOB** ^ ^ - q vP A r ° N C * <^> < o T>CT 69 f^» N. MANCHESTER, INDIANA '*