Minister Swenson to the Secretary of State

[Extract]
No. 193

Sir: You will have observed from the note transmitted to you with my No. 190, of the 23rd ultimo, regarding the sale of the Danish West Indies, that the modifications therein proposed were to a great extent inspired by the Danish Rigsdag. A number of communications regarding this matter were exchanged between the finance committees of the two houses of that body and the Foreign Office, with the result that the Minister of Foreign Affairs considered it advisable to propose certain changes in the amended draft submitted to him last November. The present Ministry is politically weak, being opposed by a large and aggressive majority in the lower house of the Rigsdag and being supported only in a half-hearted way by a faction within its own party sufficiently large to reduce its majority to one or two votes in the upper house whenever important differences in political policy arise.

As a result of this condition, the Ministry is lacking in self-confidence and in courage to take the initiative in important matters. It is therefore natural that it should manifest a strong tendency to defer to the Rigsdag even on what may seem nonessential points of detail in conducting the negotiations for the sale of the Danish West Indies. There is a dreaded apprehension on the part of the Ministry lest the Rigsdag might try to embarrass the Government for political purposes after an eventual convention should have been signed. To forestall this, the Rigsdag is asked in advance what terms it would consider satisfactory in the event of a sale.

I am acquainted with the contents of the correspondence referred to above; and I am kept well informed of what the members of the Ministry, the members of the Rigsdag, and other persons of influence, say and do privately regarding this matter.

The modifications considered most important by the Rigsdag are those concerning the rights and political status of the inhabitants [Page 482] after an eventual cession, and the customs relations between the islands and the United States. The Foreign Office realized the difficulties of embodying provisions on the latter point in the treaty. It is, however, important that this subject be covered fully in the correspondence exchanged, and that such assurances as can be given in the line desired by the Danish Government be made in a manner that would tend to satisfy the Rigsdag.

In former dispatches, I have spoken of the King’s attitude regarding a cession of the islands. He dislikes to part with them; but feels that the offer of the United States ought to be accepted, if the transfer can be made on such conditions that the best interests of the inhabitants will be subserved thereby.

This is also the view of the Ministry and a majority of the Rigsdag. The finance committees of the Rigsdag have committed themselves to a sale, on the conditions set forth in the note from the Minister of Foreign Affairs referred to above. You will, therefore, see the importance of acceding to as many of the proposed changes in the draft as possible.

It would be well if an answer from the United States Government could reach the Foreign Office before the dissolution of the present Rigsdag, which will probably occur the first week in April.

Prominent business men are quietly trying to induce the Government to break off the negotiations; and are proposing plans whereby, with the cooperation of the Rigsdag, they would make an effort to improve the economic and commercial conditions of the islands.

The general manager of the East Asiatic Steamship Company, Mr. Anderson, is especially active in this work. Admiral Richelieu, who is soon expected to return from Spain, whose navy he is said to have built up, and who has been a prominent political and commercial factor there for a number of years, is also exerting his influence to further this plan. He will in the near future be elected President of the United Steamship Company, one of the largest navigation companies in the world.

Director Gluckstadt of Landmandsbanken, is also associated with these men. * * *

Some of these men recently held a secret meeting with members of the Finance Committees of the Rigsdag, to impress their views upon them and to interest them sufficiently in their plans to secure the desired appropriations for supporting private initiative in the direction indicated above. I have learned what transpired in this meeting. Nothing of importance was accomplished.

The Rigsdag appears to be of the opinion that sacrifices enough have already been made by the Danish Treasury for the benefit of the islands; and that if anything further is to be done, it will have to be undertaken by private initiative, unaided by financial support on the part of the Government.

Mr. Anderson expresses entire confidence in his ability to formulate a plan for the improvement of the islands that will meet with the approval of the Rigsdag; in which event the Minister of Foreign Affairs will feel constrained to break off the negotiations now being conducted between the United States and Denmark.

I think he is somewhat sanguine and overconfident in his ability to accomplish all this; nevertheless it is one of the factors we have to reckon with.

[Page 483]

The Minister of Foreign Affairs is a little apprehensive lest the Folkething might suddenly change front on the question for political reasons.

The above, which gives the situation as it is at present, may help to enlighten you on one or two points.

I have [etc.]

Laurits S. Swenson