Secretary of Embassy White to the Secretary of State

[Telegram—Extract]

I had an interview with the Danish Minister for Foreign Affairs day before yesterday, from whom I have ascertained that Denmark is willing to cede Danish West Indies to us. He would not state on what terms, but merely that if we make an offer it will be seriously considered. Government, and particularly the King, very sensitive about our former treatment of the question and especially anxious to avoid any appearance of offering islands to us. After some persuasion Minister intimated that a payment of between four and five million dollars would probably indemnify Treasury for advances to islands and cover capitalization of certain pensions necessary in case islands are ceded to another Power. I subsequently had long interview with two officials’ of Ministry of Finance who furnished me with figures showing debt to consist solely of loans from Danish Treasury to islands to cover deficits. It increases annually by about 550,000 crowns, the accumulated interest augmenting similarly by about 22,976 crowns. The debt with accumulated interest amounted March 31st last to 9,304,762 crowns. Capitalization of pensions estimated 4,662,000, making a total of 13,966,762 crowns—about 3,780,802 dollars. Treasury also owns plantations, valued about 191,000 crowns, and has loaned to private societies and individuals in islands about 3,000,000 crowns. * * *

White