Minister Swenson to the Secretary of State
Copenhagen, November 11, 1901.
Sir: The Minister of Foreign Affairs today handed me a copy of an amended draft for the proposed cession of the Danish West Indies to the United States.
Some of the changes he proposes relate to subjects which have not been included in the drafts heretofore submitted. The most important proposals, however, have reference to the civil status of the inhabitants of the islands after an eventual cession, and to the obligations at present resting upon the colonial treasury of St. Croix in consequence of the 5% guarantee of 1876 to the St. Croix Fallessukkerkogerier Co. Ltd.
I take it that an agreement has virtually been reached as to compensation ($5,000,000). The Danish Government will not insist on the further additional sum of $190,000 for the purpose of liquidating the obligations mentioned in the provision incorporated in Article I of the amended draft; but it is likely to insist on embodying an express clause in the treaty stipulating that in no event shall said debts and liabilities become a charge upon the Government of Denmark. The stockholders of the sugar company claim that the Danish Government is liable for this guarantee, and that the courts would so hold.
They declare that if their claims are not settled amicably they will resort to litigation. The Danish Ministry and Rigsdag are of opinion that the colonial treasury of St. Croix is the sole debtor in this case; and they do not feel inclined to assume a debt for which they disavow all responsibility, and which, they say, was unwisely authorized by the unpopular and arbitrary Estrup Ministry—of the opposition. Minister Deuntzer requests me to say that he feels confident that the stockholders would accept 50% in full of all claims, if the treaty contained the agreement he suggests.
The future civil and political status of the inhabitants greatly concerns the King and it is feared that he would interpose his objection to the conclusion of a convention that was silent on that point or left the matter entirely to the pleasure and discretion of Congress.
That part of Article III beginning with “and in case they remain” etc., would meet the approval of His Majesty as well as of the Danish Government, if made to read as follows:
and in case they remain in the islands, they shall continue, until otherwise provided, to enjoy all the private, municipal, and religious rights and liberties secured to them by the laws now in force. If the present laws are altered, the said inhabitants shall not thereby be placed in a less favorable position in respect to the above mentioned rights and liberties than they now enjoy.
The raising of the money consideration from four to five million dollars, the importance of which I impressed upon you in my Nos. 221 and 227, of October 4 and 24 last, respectively, has had the expected effect. The “psychological moment” has been reached; and the time to terminate the protracted negotiations and to conclude a treaty for the cession of the Danish West Indies to the United States is here. The acquisition of these islands by the United States must [Page 499] be looked upon as a diplomatic achievement of no mean magnitude. The obstacles in our way have been considerable. The reluctance of the Danish Government to enter upon negotiations anew after having been so treated by our Senate in connection with the treaty of 1867; the well-known wish of the King and other members of the Royal family to retain these possessions under the Danish Crown; the popular agitation against the sale; the negotiations having been conducted with three different ministries—at least one of which took up the matter in only a half-hearted way; all these difficulties have had to be contended with and cleared out of the way. It is certainly a source of much gratification that success seems at last to crown our efforts; and I hope that whatever troubles may arise in the further progress of the treaty on the way to its final proclamation may be overcome.
I have [etc.]