Minister Swenson to the Secretary of State

No. 150

Sir: I have had the honor to receive your No. 86, of the 29th ultimo, with enclosure as therein stated, and your cablegrams of the 3d and the 20th [19th] instant, relative to negotiations for the cession of the Danish West Indies to the United States.

On the 5th instant I called on the Minister of Foreign Affairs, and on inquiring if he had received advices from the Danish Minister at Washington on this subject, was informed that he had received a cablegram from him Feb. 3, stating that on Jan. 30 he had mailed a communication to the Danish Foreign Office enclosing a copy of a draft of a convention for the cession of the Danish West Indies to the United States; that the sum offered was $3,500,000; and that secrecy and early action were important. After consultation with [Page 466] the Premier, who holds the portfolio of finance and of the colonies, he had instructed Mr. Brun to ask that the purchasing sum be raised to $4,000,000.

Inferring that your cablegram to me, dated February 3, had been sent after Mr. Brun’s interview with you on this point, I informed his excellency that telegraphic communications from you indicated that it was of the utmost importance that the terms of your proposal be adhered to; and that if the Danish Government was disposed to cede the islands to the United States, it would be well to take such preliminary steps in that direction as could be taken pending the arrival of the text of the proposed convention. I was informed that the matter would be taken up at once with the Minister of Finance, and that the importance of time and secrecy would be impressed upon all concerned.

Your No. 86, enclosing two copies of a draft of a proposed convention reached me Saturday morning, Feb. 10. In the afternoon I had conferences with the Minister of Foreign Affairs, the Director General and the Minister of Finance, who had familiarized themselves with the provisions of the draft received from Mr. Brun that day. We discussed these provisions, comparing them with those contained in the convention of 1867. Objections were raised to the sum offered; to that part of Article I providing that, “this cession conveys &c., &c., &c.,—free and unencumbered by any grants, conditions, privileges or franchises in any way affecting or limiting the exercise of such sovereignty;” and to Article III, on the subject of citizenship.

The first point, as to the sum offered was not urged strongly. On the second point, it was explained that the Danish Government desired to stipulate that the obligations entered into with the English West India and Panama Telegraph Co., and with the Floating Dock Co. at St. Thomas be recognized and respected by the United States. The former company, to which certain concessions had originally been granted Feb. 12, 1896, had recently been subsidized for a period of five years, to Jan. 1, 1905, in the sum of $3,000.00 per annum from the treasury of St. Thomas and $1,000.00 per annum from the Treasury of St. Croix. The latter company was on March 12, 1897, granted a monopoly for 21 years, securing exclusive right to adopt its own charges, regulations, etc. On the third point, the phrase, “being subject to such laws as are applicable to other foreigners” did not meet with approval, it being urged that the persons referred to ought to be accorded the same privileges, rights and immunities as are granted to citizens of the United States in the islands, and that Danish citizens inhabiting the islands ought to be given the opportunity to invest themselves With United States citizenship immediately after the convention takes effect.

A desire was also expressed to add a supplementary clause to Article II for the purpose of removing all possible doubt as to whether the stipulation that “sums due to the Danish Treasury by individuals are reserved and do not pass by this cession” covers sugar factory stock and mortgage securities in private plantations held by the Treasury in consequence of moneys loaned to private individuals. Charitable and other institutions were also referred to.

In addition, inquiry was made with respect to the political status and the relations of the islands to the United States after cession.

[Page 467]

I stated that it was not the practice of the United States to embody in conventions for the acquisition of territory guarantees as to contracts, franchises, etc., calling particular attention to our late treaty with Spain on this subject, with the assurance that just and equitable treatment, with due regard for the obligations of international law, would be accorded in dealing with contracts entered into by the Danish Government. After some little discussion, it was conceded that the United States could not be expected to assume any obligations as to the concessions in question, especially with regard to the Floating Dock Co. On the subject of citizenship, the power of Congress to legislate, our naturalization laws enacted by virtue of such power, and naturalization by treaty were fully discussed; and the stipulation in our late treaty of peace with Spain was read. I expressed the opinion that the executive authorities desired to follow recent precedent in this matter, pointing to weighty reasons for so doing, especially at this time.

It was agreed that no stipulations would be necessary to secure the rights of charitable and similar institutions.

As bearing on the relations of the islands to the United States, after cession, especially with reference to customs regulations, I made general reference to the constitutional aspects of the case, and touched upon the President’s policy, the Foraker Bill, and the recent report of the Committee on Ways and Means with regard to Porto Rico.

I added that in all matters pertaining to the islands, the Government of the United States could be relied upon to act with the utmost regard for the welfare and interests of the inhabitants; the nature and spirit of our Government as well as our past record in dealing with acquired territory affording sufficient guarantee in that direction.

I urged the considerations set forth in your communications to me for secrecy and an early acceptance of the proposed convention, without essential modifications. After these conferences, which were held Feb. 12, 15, 16, 20, 21 and 22, most of the objections to the provisions of your draft were withdrawn. One or two nonessential modifications may, however, be proposed, largely for political reasons.

On the 17th instant a Council of State, composed of His Majesty the King, His Royal Highness the Crown Prince, and the members of the Ministry, was held, at which His Majesty formally gave his consent to enter upon negotiations, for the cession of the Danish West Indies to the united States. Though evincing no strong desire for the transfer of these colonial possessions to another power, His Majesty expressed the belief that the best interests of the islands would be subserved by cession to the United States.

On the 20th instant, the Premier called on me, at the Legation, stating that on the following day he and the Minister of Foreign Affairs were to meet with the Finance Committees of the two branches of the Rigsdag for the purpose of apprising them of the proposed negotiations. I had previously been informed that this would be necessary before any formal reply could be made to me in the matter; but had been given to understand that no difficulty would be experienced in securing the cooperation of the members. On the 22d I called on the two Ministers to ascertain the results of the meeting. I was informed that the draft of the proposed convention had been laid before the committees; that but little discussion and few expressions of opinion had ensued; but that some opposition had manifested [Page 468] itself, one of the members of the Government party having been especially severe and outspoken in his antagonism. The Minister of Foreign Affairs was not pleased with the manner in which the proposal had been received by the committees, and expressed some apprehension that public agitation might prove disastrous to the negotiations. The Minister of Finance, however, anticipated but little difficulty from the opposition, saying that the combative propensities of the member who had been seized with such patriotic emotions were well known and that he had been prepared for trouble from that quarter. He made light of it, assuring me that it would receive but scant attention. I inquired if it was a fact that petitions were quietly being circulated against the sale of the islands, and that public meetings and agitation by the press were being considered, and, if so, what effect that would have. He replied that he understood that such petitions had been signed by a few persons and that some agitation might be looked for, but attached slight importance to it.

To-morrow the Rigsdag takes a recess until Tuesday, Feb. 27.

No meeting of the Finance Committees can be had before the 28th; and as the meeting referred to above was productive of no result, the Minister of Foreign Affairs will not be prepared to give a definite reply to your proposal till after the 28th instant.

The Minister of Foreign Affairs, desiring to have the convention concluded here to avoid the appearance that the proposal for disposing of the islands had come from the Danish Government, I cabled you, under date of the 19th instant, as follows: “Minister for Foreign Affairs wishes treaty concluded here. Cable authority to sign.” On receipt of your telegraphic reply of the 20th instant, I communicated the contents thereof to the Foreign Office, and was informed that Mr. Brun had cabled similar advices on the same day. The Minister of Foreign Affairs wishes to give the matter further thought before replying. To-day he informed me that when an agreement shall have been arrived at on the text of the convention, he may conclude to authorize Mr. Brim to sign it at Washington.

My communication to the Foreign Office formally submitting a copy of the proposed convention for the consideration of the Danish Government was handed to the Minister of Foreign Affairs on the 20th instant.

A copy of the note is herewith enclosed.

You will find appended on the overleaf copies of the telegrams referred to above.

I have [etc.]

Laurits S. Swenson
[Inclosure]

Minister Swenson to the Minister of Foreign Affairs

No. 87

Excellency: Referring to the interviews had with your excellency regarding the disposition of your Government to revive the negotiations which in 1867 resulted in the signature of a convention between the United States and Denmark for the cession of the Danish West India Islands, I now have the honor to transmit herewith a copy of a draft of a convention, which in obedience to instructions from the Secretary of State of the United States, I respectfully submit for the [Page 469] consideration of the Danish Government. In the event that this proposal should be favorably received and substantially accepted by your excellency’s Government, the Secretary of State desires me to inform you that he is prepared to sign it with the Danish Minister in Washington, who, he suggests, might be called authority to that end.

The considerations that make early action desirable have been fully discussed in my conversations with your excellency and Director General Krag on this subject; and I shall not at this time impress upon you the urgency of a speedy issue of the negotiations, lest I may appear discourteous or importunate. I am satisfied that you appreciate the circumstances as represented orally to you, and that you will expedite matters as much as is consistent with the nature and importance of the subject under discussion.

In his instructions to me, the Secretary of State refers to the cordial relations and the strong friendship subsisting between the two Governments, of which Denmark gave so conspicuous evidence in 1867 and which has since been testified in other ways; and he expresses the hope that the Danish Government will entertain the present proposal in the friendly spirit in which it is tendered.

I avail [etc.]

Laurits S. Swenson