[Inclosure—Translation]
The Minister of Foreign
Affairs to Minister Swenson
Ministry of Foreign Affairs,
Copenhagen,
February 21, 1901.
Mr. Minister: In connection with my
preliminary note in which I acknowledged the receipt of your
communication of November 29 last, I have the honor to request that
you be good enough to inform the honorable Secretary of State at
Washington that the King’s Government has considered most carefully
the amended draft of a convention for the cession of the Danish West
Indies to the United States submitted by your Government.
After such examination the King’s Government is still unable to
consider as satisfactory the stipulations contained in the projects
regarding the rights guaranteed to the inhabitants of the islands as
well as the amount of the consideration offered; and in consequence
it does not dare to hope that it would be able to obtain the consent
of the Rigsdag to the amended draft of convention.
[Page 480]
Regarding the first point, the Government, which is unable to see any
real change in the clauses in question contained in Article III of
the new project, does not think that it ought to accept a less
favorable condition for the inhabitants of the islands now than was
assured them by Article 3 of the convention of October 24, 1867,
whereby they were given the option of preserving their former
allegiance to the crown of Denmark or acquire the rights of citizens
of the. United States. In this connection the Government must insist
on securing for the islands free trade with the United States; as it
seems natural that in this respect they ought to be given a position
identical with that secured to Porto Rico after March 1 next year.
Regarding the compensation offered, the Government first begs to
observe that this is not to be considered as a purchasing sum for
which the United States would eventually acquire the claims and
demands which the Danish Government at present possesses the right
to enforce against the colonial treasuries; inasmuch as it is the
desire to rid the islands of this debt and their consequent cramped
situation, without necessitating a loss on the part of the Danish
Treasury of the sums that it has loaned or advanced to the colonial
treasuries, and thereby make a better financial and economic future
for the islands possible, that after all, should induce Denmark to
transfer these islands to a foreign Government. The Government must
therefore expressly guard against the possibility of eventually
construing the wording of Article I, “This cession conveys to the
United States the said islands and appurtenances in full and entire
sovereignty, with all the dominion, rights, and powers, which
Denmark now possesses and can exercise in them …,” to import that
the financial claims now held by Denmark against the colonial
treasuries had been transferred to the United States. Though the
Government of the King believes itself in full accord with the
Government of the United States on this point, it being assumed that
the latter agrees with the former in regard to this matter, it
nevertheless considers it desirable in order to avoid possible
misunderstanding and to reassure the inhabitants of the islands,
that this view should be expressly embodied in the text of the
convention, so that it should be stipulated that in the event of the
transfer of the islands the colonial treasuries were to be
considered released from their debts and obligations to the Danish
Government Treasury.
In placing the amount of the consideration at four million dollars,
the Government has taken into consideration not only the loans and
advances made by the Danish Treasury, but also all the various
obligations and encumbrances that would devolve upon said treasury
in consequence of a cession. It has accordingly, among other things,
found it necessary to have in view the fact that it would be
compelled to seek the consent of the Rigsdag to effecting an
arrangement with the joint-stock company St. Croix
Fallessukkerkogerier (Cooperative Sugar Factories of St. Croix)
whereby that company would relinquish its claims to the 5% interest
guaranteed it by the colonial treasury of St. Croix. In order that
the principal object of an eventual session may be realized—namely
to secure for the islands a happier future and a better economic
development than they have enjoyed heretofore and for which a
release of the colonial treasuries from their present burdensome
obligations must be considered necessary—and in order that the
Danish State Treasury may receive full compensation for the
sacrifices already made as well as for eventual future obligations;
the consideration must, in the opinion of the Government be placed
at four million dollars.
In addition, it would have to be agreed by the two Governments that
while in that event the colonial treasury would have to continue to
discharge its pecuniary obligations towards the West India and
Panama Telegraph Company as a compensation for the maintenance by
said company of telegraphic communication between the islands and
the surrounding world, the Government would have to seek the consent
of the Rigsdag to releasing the colonial treasury of St. Croix from
its present obligations towards the Danish State Treasury and to an
arrangement whereby said colonial treasury would be released from
its guarantee of interest to the stockholders in the St. Croix
Fallessukkerkogerier, which consent would have to be secured before
the conclusion of an eventual convention. The United States would,
on the other hand, bind itself to respect the concession granted to
the Floating Dock Company of St. Thomas March 12, 1897, in
accordance with the terms of which no other floating dock can be
built in that harbor within 21 years of said date or any slips for
ships of more than 200 tons, excepting the one now existing, whose
enlargement the company’s monopoly shall not hinder.
In case the accession of the United States Government to the
amendments of the draft as indicated above should be secured, I beg
to call attention to some minor modifications that would have to be
made in the convention.
[Page 481]
To Article II, clause 1, it is desired to add: “The public
foundations shall continue to be applied in conformity with their
destination.” [English text in note.] The sums in question which
amount to $78,108.21 in St. Croix and to $100,941.84 in St. Thomas
and St. John, are applied mostly for the benefit of the poor, partly
to encourage labor immigration. To clause II of the same article it
is desired to add to the words, “Sums due to the Danish Treasury by
individuals,” the words,” including property taken over by the
Danish Treasury for sums due to the same by individuals,” inasmuch
as it seems natural that the plantations that the State Treasury has
had to take possession of as creditor should not be included in the
transfer.
These plantations, which are located on St. Croix are entered on the
books for $47,946.17.
To article III it is desired to add a provision that Danish subjects
not living in the islands but owning property there shall not in any
way be affected in their property rights by a cession.
Finally it is desired to add the following words to article IV:
“Their arms as well as the military stores existing in the said
territory or islands are not included in the cession.”
I avail [etc.]
