Chargé Lorillard to the Secretary of State

No. 45

Sir: Referring to previous correspondence from this Legation relative to the alleged sale of Water Island, situated at the entrance to the harbor of St. Thomas, Danish West Indies, to a German steamship company, supposed to be acting in the interest of the German Government, I have the honor to inform the Department that this matter has been carefully watched by the foreign representatives here and that I have frequently been questioned on the subject by my colleagues.

The Italian Government especially seems to have taken an extraordinary amount of interest in this affair. Several weeks ago, the Italian Chargé d’Affaires read me part of an instruction from his Government, directing him to report fully on the subject and stating that the Italian Ambassador at Washington had reported that this alleged sale has caused some excitement and annoyance in the United States. The Italian Chargé subsequently had an interview on the same subject with Mr. O’Brien. Several days later he informed [Page 552] me that the Italian Ambassador at Berlin had been assured by the German Government that the steamship company was in no way acting as its agent in this business and that further the alleged sale had not yet taken place. To show the importance attached to the whole affair by the Italian Government, the Italian Chargé told me that the above information was conveyed to him by means of a cipher telegram.

I have [etc.]

George L. Lorillard