The Secretary of the United States for the Department of foreign Affairs, to whom was referred the Draft of a Treaty of Amity and Commerce, transmitted by the American Ministers1—Reports

That in his Opinion, a System for regulating the Trade of the United States, should be formed and adopted, before they enter into further Treaties of Commerce—It appearing to him more wise, that such Treaties should be accommodated to their System, than that their System should be accommodated to such Treaties.—

That in forming this System many important Questions will arise, such as Whether american Exports shall be wholly, or how far, confined to american Bottoms? Whether any, and what Distinction, shall be made in that Respect, between the Vessels of one foreign Nation, and another? Whether american Exports, to whatever Nation bound, shall be charged with any, or the same, or what different, Duties? Whether all foreign Merchandizes, by whatever Nation imported, shall be charged with the same Imposts? Whether any ^&^ which Species or Denomination of foreign Production or Manufacture, shall be prohibited? These and other Questions of the like Nature, will probably arise; and these Treaties will anticipate, if not embarrass, the Discussion and Decision of some of them.—

As to the Draft of a Treaty referred to him, he thinks the Policy of some of the Articles in it questionable.—

I. It appears to him inexpedient to make the Conduct of the Parties towards the most favored Nations, the Rule of their Conduct towards each other.—

• (1) Because as other Nations have regulated their Trade, and we not, their Systems cannot be deranged by it; but it may much perplex the Formation of ours.—
• (2) Because the Interchange of Favors between us and a Nation merely European, will probably be regulated by Principles and Considerations distinct in a certain Degree from those which should regulate such an Interchange between us and Nations partly European and partly American.—
• (3) Because it may give Occasion to Difficulties and Disputes not easy to be settled.—
• (4) Because the Inducement to those Favors may arise from Advantages not in the Power of the other to afford in kind; and the 26th; Article does not provide for an equivalent Consideration, where it is not in the power of the Party to grant a similar one. Besides Considerations may be exactly similar in kind, and yet very different in value, and the Article in Question does not seem to attend to that Circumstance.2—
• (5) Because we may have Reasons for freely granting to one Nation, what we may have no Reason to grant to another.—
• (6) Because as our Trade is at Present free to all, we have few favors to grant to any; whereas their Trade being charged with various Duties and Restrictions, they need only relax to have Favors to grant.—

He thinks it would be better therefore to let each Treaty stand alone, without Referrence to, or Connection with any other.—

II. Your Secretary doubts the Expediency of agreeing absolutely that any foreign Nation shall be at Liberty to bring and vend in the United States, all or any of their Productions and Manufactures without Exception—^[in margin] See 4 Article^

Because it may be necessary, either for the Purpose of checking the Progress of Luxury, or for the Purpose of promoting our own Manufactures, to prohibit the Importation of certain merchandizes.—

He thinks it a mistake that high Duties can answer the Purpose of a Prohibition; because if the obnoxious Articles are permitted to be entered at all, it will be impossible always to decide whether their Importation was regular or clandestine.—

These Objections cannot have equal Force with other Nations in their Connections with us, because we have little or nothing to carry to them, which could either injure their Manufactories or encrease their Luxury.—

III. Your Secretary has Doubts respecting the 16th. Article, which suspends laying Embargoes.—

To an European Nation at War with an European Nation, Embargoes are of little consequence, because surrounding Nations can and will supply to each Party whatever they may want—but an European Nation at War with us, can by means of neutral Vessels obtain great Supplies from us, which under certain Circumstances and in particular Emergencies, they could not easily acquire elsewhere.—

Your Secretary is of Opinion that the Duration of these Treaties should be very limited, because the encreasing Importance as well as the encreasing Experience of the United States, will almost from Year to Year encrease their Capacity of making such Connections and Compacts more and more correspondent to their Views and Wishes.—

All which is submitted to the Wisdom of Congress.—