Minister Swenson to
the Secretary of State
No. 172
American Legation,
Copenhagen,
June 20, 1900.
Sir: I have the honor to enclose herewith a
copy, together with a translation, of a confidential note addressed to
me by the Minister of Foreign Affairs, under date of the 18th instant
relative to a cession of the Danish West Indies to the United
States.
The new Ministry has devoted much time to an earnest and careful
consideration of the conclusion that such cession is desirable and that
the negotiations with the United States to that end ought to be
continued. See in this connection my No. 158, of March 17 last, and my
No. 166, of May 4th last.
Before entering the present Ministry some of the members were opposed to
a transfer of the islands, and joined in signing the protest to the
Rigsdag referred to in my No. 158, of March 17 last. Having been
entrusted with the responsibilities of government, however, and having
been called upon to make a thorough examination into the question, they
take a more practical view of it; and the Ministry is now unanimous in
its opinion that a sale is desirable. In an interview which I had with
the Minister of Foreign Affairs yesterday, he took pains to assure me
that the modifications requested by the Danish Government in the draft
of convention submitted by the Government of the United States were not
intended as a diplomatic move to break off negotiations, but as a frank
and sincere effort to arrive at an agreement that would prove
satisfactory, especially to the Rigsdag.
Popular agitation against the sale of the islands has ceased; and time
has cooled the ardor of prospective reformers and promoters of
enterprises looking to the revival of commerce between these colonies
and the mother country.
The adventurers who have figured prominently in the newspaper interviews
on this subject have lost their bearings, and will likely be less
communicative for a while at least. Negotiations can now be conducted
under more favorable conditions than a few months ago, as far as the
Danish Government is concerned; and I trust that they may be carried to
a successful termination,
I have [etc.]
[Page 473]
[Inclosure-Translation]
The Minister of Foreign
Affairs to Minister Swenson
Ministry of Foreign Affairs,
Copenhagen,
June 18, 1900.
Mr. Minister: From interviews which my
predecessor as well as I have had the honor of having had with you,
you are acquainted with the main view of the King’s Government on
the proposal for a cession of the Danish West Indies which
accompanied your note of February 20, last. You are aware that the
King’s Government would feel justified in ceding these islands,
which for so long a time have belonged to the Danish crown, only in
case it felt assured that the islands and their inhabitants would by
passing to the United States, a large country, situated near by,
gain a position preferable to what they may look forward to if they
are to continue in the possession of distant little Denmark.
This point of view the King’s Government must adhere to; especially
as it is not the intention to give the inhabitants an opportunity to
express themselves for or against cession by submitting the question
to a vote. The King’s Government accordingly presupposes; first,
that the inhabitants who do not choose, within a term reserved for
that purpose, to preserve their status as Danish subjects shall
obtain, as soon as the cession shall have been effected, the rights
enjoyed by American citizens; second, that simultaneously with the
cession, they shall be exempted from all customs duties in their
relations with the United States, or obtain, in this respect, at
least the same advantages recently accorded to Porto Rico, so that
the duties on goods entering the United States shall be greatly
reduced and after a short period of transition entirely
abolished.
You are also aware of the fact that the King’s Government, which does
not wish to consider the cession of the islands as a mere commercial
transaction, asks as compensation only an amount sufficient to
reimburse the Danish Treasury for sums, with accrued interest,
advanced to the colonial treasury of the islands, to the commune of
St. Croix, and to the stock-company, The Sugar Factories of St.
Croix; also, by capitalization, for pensions which in consequence of
the cession, would have to be paid to the functionaries of the
islands.
Such reimbursement would require a compensation of four million
dollars; and it is doubtful if the Government can obtain the assent
of the Rigsdag to the convention if the purchasing price is fixed at
only three and one half million dollars. In any case such assent can
not be secured unless an absolute guarantee can be given that the
Danish Treasury will be liable for no obligations after the cession
has been made.
The draft submitted by your Government provides that the islands
shall be free from all encumbrances limiting the exercise of
sovereignty. There are, as you know, a number of such encumbrances
in the islands; notably, a monopoly exercised by the St. Thomas
Floating Dock Company, a concession granted to a telegraph company,
and a guarantee by the colonial treasury of a certain rate of
interest to the stockholders of the sugar factories. More detailed
information on this subject will be placed at your disposal if you
so desire. Of such rights, duly acquired, the King’s Government can
not divest the possessors; as that would be a violation of the laws
at present in force in the islands, and which presumably would
continue in force, at least temporarily after an eventual
cession.
The Government of the United States would, therefore, have to pledge
itself to indemnify the Danish Treasury for claims that might be
made against it by parties considering themselves damaged in
consequence of the cession, in their rights of monopoly, privileges,
concessions, the above mentioned guarantee, or similar claims. I
feel confident that when the above considerations are brought to its
attention, the Government of the United States will admit their
justness, and in that case take them into consideration and submit a
new project of a convention in conformity with the points developed
above. Such project would be conscientiously considered by the
King’s Government as a basis for negotiations between the two
Governments.
I avail [etc.]
