REPORT OF AMERICAN MERCHANT MARINE COMMISSION. 43
THE RECIPROCITY TRADE WITH CUBA.

In the important reciprocity agreement between the United States
and Cuba, not only are valuable exclusive advantages given to Cuban
productsin the American market through areduction of customsduties,
but similar advantages are secured in the Cuban market to American
manufacturers, farmers, and merchants. Only American shipowners,
builders, and seamen are forgotten. The Cuban reciprocity treaty
contains no recognition whatever of the maritime interests of the
United States.
F ortunately it is not even now too late to remedy this oversight.
Another treaty governing our general commercial relations with the
Cuban Republic remains to be negotiated, and the Commission recommends
 that, asa delayed but none the less merited act of justice to the
shipping industry, this commercial treaty should be made to provide
for reserving the transportation of this reciprocal commerce to vessels
already registered or hereafter built in the United States or Cuba. It
18 not suggested that the coastwise principle be sweepingly applied,
and foreign vessels be excluded altogether from trade between
American and Cuban seaports, but rather that the benefits of the reciprocal
 reduction of duties in either country be granted only to merchandise
 conveyed in vessels of the contracting governments. The United
States and Cuba have just as good a right to make a reciprocity agreeent
 with regard to their shipping as they have with regard to their
manufactures or their agriculture, and broad considerations of equity
as well as of prudence demand that such a shipping agreement be
concluded as soon as possible.
FOREIGN FLAGS NOW DOMINANT.

At present foreign flags cover the larger part of the transportation
between Cuba and the United States. Of total imports from the
island, valued at $62,813,362 in the fiscal year 1903, $22,490,644, or
only 85.80 per cent, were conveyed in American, and $40,322,718, or
64.20 per cent, in foreign shipping. In the export. trade to Cuba
American vessels significantly make a better showing. Of total
exports to the island; valued at $21,760,842, $11,792,402, or 54.19 per
cent, were conveyed in American, and $9,968,440, or 45.81 per cent,
were conveyed in foreign shipping. Of the entire commerce between
the United States and Cuba, both imports and exports included, valued
at $84,574,204, only $34,283,046, or 40.54 per cent, were carried in
American, and $50,291,158, or 59.46 per cent, were carried in foreign
shipping.
If all of this reciprocal commerce were secured for American and
Cuban vessels, in the manner indicated, an important advantage would
be gained for the American merchant marine, and not only for the
American fleet but also for the native shipping of Cuba. It is desirable
 for purposes of defense, as well as for the promotion of commerce,
 that there should be adequate building and repair yards, proper
docks, and a capable and experienced naval reserve of officers and seamen
 established on the coast of Cuba, as well as on the neighboring
Gulf and South Atlantic coast of the United States. These indispensable
 advantages can never be secured for either the United States or