No. 327.
Mr. Daggett to Mr. Frelinghuysen.
Honolulu, December 21, 1882. (Received January 8, 1883)
Sir: The character of the reference to our reciprocity treaty with the Hawaiian Islands by the President in his late annual message to Congress warrants me in anticipating more extended suggestions on the subject by a brief expression of opinion than public sentiment in these islands would favor, and the Government is not in a condition to successfully oppose complete reciprocity as a consideration for the continuance, in substance, of the treaty now existing between the two Governments.
Sugar-raising is the paramount interest of these islands, and every other industry seems to be directly or indirectly connected with or subservient to it. The aggregate area of lands suitable for cane-growing in this group is not great, and is confined to a few districts where the rainfalls are abundant, and to a larger number where irrigation is necessary through the diversion of the waters of small mountain streams. As the most of the lands on which cane growing is possible, either through favoring rains or accessibility to artificial irrigation, are already under cultivation, the cane growing capacities of the Hawaiian Islands may be pretty accurately determined, and the conclusion follows that the sugar product of the future can never, under treaty encouragement the most favorable, be largely in excess of the yield of to-day. The annual product may now be estimated in round numbers at 60,000 tons, and intelligent planters do not place the utmost capacity of the islands beyond 100,000 tons yearly.
Assuming this showing to be reasonably correct, I beg to present it as a point of some importance in weighing the commercial, and therefore political control of these islands against the purely commercial inequalities of reciprocity, together with such embarrassments, if any, to kindred domestic interests as a limited and known competition might create.
The total value of imports into the Hawaiian Islands in 1881 was $4,402,694.09, of which amount the United States furnished the value of $3, 122,852.93. Of the latter imports the value of $2,646,577.12 was admitted free, and duty was collected on the value of $476,275.81. Thus, it will be seen, about 18 per cent, of the imports of the United States were subject to duty.
Absolute reciprocity would not only relieve our commerce of duties on this 18 per cent, of our exports to these islands, but would virtually [Page 547] put an end to direct trade with other foreign countries, and correspondingly increase our own, for the imports from Europe consist mainly of such commodities as are subject to duty under our treaty.
The abrogation of our reciprocity treaty would be severely felt in these islands, for under its operations property values have everywhere increased, especially in real estate, and every industry has prospered.
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I am, &c.,