Minister Swenson to the Secretary of State

No. 231

Sir: I have the honor to confirm my cablegram of the 26th instant, which deciphered reads as follows: [Printed ante]

In my No. 230, of the 11th instant, I said that the Danish Government might insist on inserting in the treaty the stipulation “no responsibility, etc.,” referred to in the above cablegram. The Minister of Foreign Affairs yesterday showed me a cablegram which he had received from Mr. Brun, informing him that you could not accede to some of the proposals contained in the last amended draft from the Danish Government, among them the one touching the 5% guarantee to the St. Croix Fallessukkerkogerier.

He told me that the Rigsdag would not give its sanction to a treaty that did not expressly exempt the Danish Government from these obligations. Whether such clause would operate to bar the claimants concerned from holding the Danish Treasury liable for the guarantee in question is not clear. The matter would in that case likely give rise to litigation in the Danish courts as intimated in my No. 230. It is possible that Mr. Deuntzer would recede from his position in respect to the above clause; and I doubt that the Rigsdag would permit the treaty to be wrecked on this rock. Nevertheless, I consider my advice as cabled to be the safest under the circumstances.

[Page 500]

The time limit which you have set for the negotiations expires next Monday.

In case the United States Government should wish to extend the time, Mr. Deuntzer would, in my opinion, avail himself of the opportunity to make new demands. He has intimated as much to me, saying that after December 2 he should consider himself released from all proposals made or agreed upon before that date, if a treaty is not concluded in the meantime.

If you insist on omitting the stipulation regarding the guarantee, he would, perhaps, reply: “Then, I can not sign the treaty by December 2nd, if at all. I would have to consult the King, the Rigsdag, etc., etc., etc.” The Minister of Foreign Affairs is personally opposed to the sale of the islands, as I have informed you privately.

From the above you will realize the situation, and understand why I advise concessions in order to bring the negotiations to a speedy termination.

I have [etc.]

Laurits S. Swenson