Papers Relating to the Foreign Relations of the United States, With the Address of the President to Congress December 4, 1917
Minister Swenson to the Secretary of State
Sir: I have the honor to transmit herewith, for your consideration, a copy, together with a translation, of a note addressed to me by the Minister of Foreign Affairs, under date of June 29, 1901, relative to the proposed cession of the Danish West Indies to the United States.
I have [etc.]
The Minister of Foreign Affairs to Minister Swenson
Copenhagen, June 29, 1901.
Mr. Minister: The Government of His Majesty the King having now considered the new project of a convention for the cession of the Danish West Indies to the United States which accompanied your note of April 8 last, I have the honor to request that you communicate the following to his excellency the honorable Secretary of State at Washington:
In re Article I. His Majesty’s Government has nothing to object to the modification proposed by the Government of the United States, and according to which the ending of the first part of said article would be worded as follows: “Comprising in said cession all title and claim of title to the territories in and about said islands over which the Crown of Denmark now exercises, asserts, or claims jurisdiction.”
His Majesty’s Government also accepts the second part of said article, as worded in the new draft. It would, however, recommend the following modifications: For the words, “but that the colonial treasuries are to be considered released from their debts and obligations to the Treasury of the Danish Government,” the following words are to be substituted: “It being agreed that these claims are altogether extinguished in consequence of the cession”; for the words, “the current obligations heretofore contracted by the Danish Government,” the following words are to be substituted: “The obligations heretofore incumbent upon the Danish Government.” Finally, inasmuch as His Majesty’s Government holds no pledges or securities for its protection or reimbursement in respect to the two companies mentioned in said article, it would propose that the following words be omitted: “The Danish Government transferring to the United States any pledges or securities which it may hold for its protection or reimbursement in respect to said companies.”
In re Article II. Inasmuch as the Government of the United States finds itself unable to accept the proposal of His Majesty’s Government that a proviso be inserted in the first paragraph of this Article stipulating that the pious legacies shall continue to be applied in conformity with their purpose; His Majesty’s Government recedes from the proposal in question, being convinced that the Government of the United States admits that, inasmuch as the public funds can [Page 491] not be considered as property belonging to the Danish Government, they would not pass to the Government of the United States by virtue of Paragraph 1, Article II. His Majesty’s Government accepts the proposal to incorporate in the concluding part of Paragraph 1 of this article the proviso regarding arms, etc., and proposes the following wording: “It being, however, agreed that the arms and military stores existing in the islands at the time of the cession and belonging to the Government of Denmark shall remain the property of that Government and shall, as soon as circumstances will permit, be removed by it, unless they, or parts thereof, may before have been bought by the Government of the United States, upon a special agreement made with the Government of Denmark, it being, however, understood that flags and colors, uniforms and such arms or military objects as are marked as being the property of the Danish Government shall not be included in such purchase.” In Paragraph 2 of said article His Majesty’s Government proposes to substitute for the words, “the Lutheran Congregation,” the words, “the Congregations belonging to the Danish National Church.” Considering the terms of 12 months too short, His Majesty’s Government further proposes to substitute for the concluding lines of said article, after the words, “but the Danish Government shall sell or dispose of such property and remove its proceeds,” the following words: “Within two years from the date of the exchange of ratifications of this convention, the United States Government being entitled to sell by public auction to the credit of the Danish Government what might not have been sold before expiration of the said term of two years.”
In re Article IV. His Majesty’s Government proposes to add at the conclusion of this article: “But not later than six months after the said exchange; it being, however, understood that if those persons, after having quitted the Danish service, do not wish to leave the islands, they shall be allowed to remain there as civilians.”
In re Articles V and VI. His Majesty’s Government has nothing to say.
In re Article III. I have reserved Article III for the last, as it calls for more extended observations. I would first remark, with reference to the text, that the sense would seem to require that the words, “in case they remain in the islands,” be placed higher up. His Majesty’s Government, accordingly, proposes that in paragraph 1 of said article the words, “and in case they remain in the islands, they shall enjoy,” be substituted for the words, “and they shall also enjoy.” In case of such change, it would become necessary to insert at the beginning of paragraph 2 of said article the words, “those who remain in the islands, may further preserve,” in place of the words, “in case they remain in the islands, they may preserve.” As regards the scope of the rights which it is the object of this article to define, I regret to observe that the Government of the United States did not see its way clear to accede to the proposal to embody in the convention provisions regarding the customs relations of the islands and the rights of the inhabitants after an eventual cession. You are familiar, Mr. Minister, with the views of His Majesty’s Government in this matter. When the Government, at the beginning of the negotiations, declared itself disposed to agree to an eventual cession of the Danish West Indies, it was because of the desire to secure for them a more prosperous and a happier development than was thought possible under a union with Denmark. It was, accordingly, considered a matter of prime importance, with respect to the islands as a whole as well as to the individual inhabitants thereof, that the obstacles which at present hinder a favorable economic development be removed, without in any way depriving the inhabitants of the economic privileges and rights which they now enjoy. With respect to the islands as a whole it is of special importance that the colonial treasuries be released from their present obligations which are burdensome to the inhabitants of the islands; and at the same time the Government revenues be retained and, if possible increased, without increasing the taxes. With respect to the inhabitants, the aim ought to be to lighten, as much as possible, the burdens resulting from present conditions. As regards the first point, I learn with satisfaction that the Government of the United States fully shares the view of His Majesty’s Government, that in the event of a cession, the colonial treasuries should be considered released from their debts and obligations to the Danish Government.
I may add here that the Danish Minister of Finance has entered upon negotiations with the stock company St. Croix Fallessukkerkogerier, with a view to releasing the colonial treasuries from their obligations and guarantees to the stockholders. But even under such circumstances it would be difficult to bring about a balance in the receipts and expenditures of the colonial treasuries. [Page 492] Leaving out of consideration the interest on the debt to the Danish Treasury and the amount required to liquidate the obligations to the stockholders referred to above, the budget for the Island of St. Croix for the fiscal year 1900–1901 shows as against total receipts of scarcely 155,000 dollars total expenditures of about 200,000 dollars. Eighty-five thousand dollars, or nearly 55% of the receipts is derived from customs dues (65,000 dollars import taxes and 20,000 dollars export taxes). It will thus be seen that the colonial treasuries can not dispense with the customs receipts nor readily replace them with other taxes; inasmuch as the receipts and expenditures can in all probability not be made to balance, without imposing a new tax, even if the present sources of revenue are retained, and the expenses are somewhat reduced. On the other hand, one of the principal advantages expected from a union between the islands and the United States was that their principal products, especially sugar, would be admitted to the markets of the United States free of duty or, in any event, with a considerable reduction of duty. How to surmount this difficulty and how to arrange the custom relations in a manner satisfactory to both parties is one of the questions that is giving concern to His Majesty’s Government; and it would be grateful if the Government of the United States likewise would consider how this matter might be best arranged, and submit a proposition to His Majesty’s Government on this subject.
With respect to the civil status of the inhabitants, His Majesty’s Government begs first to call attention to the fact that the organic law now in force insures them a large measure of autonomy in the administration of local affairs; and that they also possess Danish nationality and in consequence enjoy all the civil and political rights flowing from such l’indigénat, in case they establish their domicile within the Kingdom proper. His Majesty’s Government also invites attention to the fact that not only did the convention of October 24, 1867, between Denmark and the United States, assure to the inhabitants of the islands in the event of a cession United States citizenship, but that Article 2 of the Treaty of Commerce, Amity and Navigation of April 26, 1826, between Denmark and the United States, which still remains in force, provides by Article II that Danish subjects in the United States shall “enjoy all the rights, privileges, and exemptions in navigation and commerce which native citizens or subjects do or shall enjoy, submitting themselves to the laws, decrees, and usages there established to which native citizens or subjects are submitted.” Turning to the project submitted by your Government, we find that it is proposed, on this point, that the Danish subjects born in the islands or permanently residing there shall be “subject to such laws as are applicable to other foreigners.” This provision would, without doubt, be regarded with much disfavor in the islands; inasmuch as the inhabitants that acquired domicile in the United States would be less favorably situated than they now are, under the provisions of the above named treaty (1826); while those remaining in the islands would not obtain United States citizenship. The foremost purpose had in view by His Majesty’s Government in the event of a cession, is, to secure a more favorable economic condition for the islands, without, at the same time, placing the inhabitants under less favorable conditions in other respects than they now enjoy, His Majesty’s Government realizes that the limited area of the islands as well as the small population renders it inexpedient to organize them into a separate state or a separate territory. On the other hand, it is feared that their incorporation in one of the States or Territories of the Union would exclude the inhabitants from exerting any influence in the administration of their local affairs, unless they had obtained guarantees in that respect by means of special stipulations. (Whether and how it would be possible to arrive at an arrangement that would be satisfactory for the inhabitants is a question which, under the circumstances, the Government of the King is not in a position to solve.) Your Government, however, may be able to find a satisfactory solution. At all events, His Majesty’s Government did not wish to omit pointing out that the project of the convention will have to be modified in the sense indicated; so that the inhabitants would continue, after the cession and until otherwise ordained, to enjoy the private as well as the municipal and religious rights accorded them under the laws now in force in the islands; and that if these laws should be changed they would, with respect to these rights, be treated as citizens and subjects of the United States. Not yet having received a copy of the decisions recently rendered by the Supreme Court of the United States, in which the questions referred to above were involved, and not knowing whether the Government of the United States intends to solve these questions by means of a general law, and if so, what kind of law, His Majesty’s Government does not find itself in a position to submit a text for [Page 493] Article III that would have due regard to the considerations set forth above and at the same time not conflict with the Constitution of the United States.
I trust that the Government of the United States will be able to submit a proposition to His Majesty’s Government that will solve the difficulties which I have pointed out.