Thomas Baines - Observations on the Present State of the Affairs of the River Plate

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A large portion of the revenue, both of Monte Video and of Province of Buenos Ayres, is raised by taxes on the importation of foreign goods, and the rate of duties is not excessive in either case. It is not on this account that any one complains of the Buenos Ayrean Government, but because it confines foreign commerce to the single port of Buenos Ayres, and excludes both foreigners and foreign vessels from the other ports of the Confederation, as strictly as the Chinese formerly excluded them from every port except Canton. This it is able to effect by its command over the entrance to the river Parana, the direct route to Entre Rios, Corrientes, and the other provinces of the Confederation. Whilst the provincial Government of Buenos Ayres thus excludes all foreign vessels from the Parana, and as far as its control extends from the Uruguay, it claims the right to expend the whole of the customs' revenue raised at Buenos Ayres. The upper provinces very naturally consider this unjust, and insist on having either a share of the revenue collected at Buenos Ayres (somewhat on the principle adopted amongst the states of the German Zollverein), or on having a general Congress of all the provinces of the Confederation to decide how the money shall be distributed. This General Rosas and his adherents refuse, and this refusal, coupled with the equally positive refusal of the same parties to allow foreign vessels to ascend the river, is one principal cause of the frequent wars between the states of the Argentine Confederation on the banks of the river and the Government of Buenos Ayres, one of which is now raging between it and Corrientes. In this way the commerce with the interior is continually interrupted. The policy of the Monte Videan Government is in every respect the reverse of this, for it not only throws open the ports of Monte Video, Maldonado, and Colonia, on the River Plate, but those of Soriano and Paysandú, on the Uruguay, the Yaguaron, on the Laguna Merin, and the dry port of Taquarembó on the Brazilian frontier to all the world, and thus gives every part of the republic all the advantages of foreign commerce.

There is a still greater difference, if it is possible, in the policy adopted by the two governments with regard to the transit trade. At Monte Video goods may be landed without the payment of any duty, may be there deposited in the Custom-house stores for any length of time, on the payment of a smaller warehouse rent than is usually paid in Liverpool, and may be sent to any of the independent countries in the interior, or re-shipped to foreign parts, without the payment of a dollar. The Government goes even further than this, for it allows goods in transit to be conveyed through the whole territory of the Republic, with a guia or Custom-house Permit to all parts of the frontier, and to be forwarded into the Argentine provinces of Entre Rios and Corrientes, into the Republic of Paraguay, and into the back provinces of the empire of Brazil, perfectly free from duty. Hence goods are constantly forwarded up the Uruguay, instead of going to Buenos Ayres to pay duty to General Rosas. The natural consequence of this is, that the people of all the adjoining states have a friendly feeling towards Monte Video. Corrientes has several times risen against the connection with General Rosas, in support of Monte Video, and Brazil is prepared, if necessary, to interfere to save it from his grasp. In fact, it is quite evident that nothing but an entire change of policy on the part of Buenos Ayres can prevent a general war against its usurpations. The policy of Rosas with regard to goods in transit to the Independent States of the interior is altogether different from that of Monte Video, for, when landed at Buenos Ayres, they pay the same duties as if they were intended for consumption there, and not a sixpence, or what is less than a sixpence, a Buenos Ayrean paper dollar, is ever returned. When goods are intended for re-exportation by sea, the difference is in appearance less, but much the same in reality, for whilst they can be landed at Monte Video without paying any duty, can remain there as long as the owners like, and can then be re-exported duty free, at Buenos Ayres they cannot be landed without paying the full duties, their owners lose all claim to have any part of those duties returned, if they are not re-exported within six months, and it is only with the greatest difficulty and after waiting many months that they obtain any return at all, even if they are exported within that time.

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1

The Monte Videan Government has granted a patent for introducing steamers on all its rivers to an Englishman, Mr. Bugglen. – ( See Appendix. )

2

Plans for forming such a canal were under consideration by the Commissioners appointed under the treaty of San Ildefonso, in 1778, to fix the boundaries of the Spanish and Portuguese possessions.

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