Chargé Lorillard to the Secretary of State
Copenhagen, December 1, 1905.
Sir: I have the honor to confirm my cipher telegram of this date, reading as follows:
Ministry of Finance informs me that it will shortly propose to the Rigsdag to increase import tariff in the Danish West Indies probably to six per cent value.
Several days ago I was informed from a reliable source that a change in the tariff of the Danish West Indies was contemplated and immediately proceeded to the Foreign Office, where I saw Mr. Krag, Director of the Ministry. While admitting that he had heard something about a contemplated change, this gentleman could not give me any definite information and I decided to see the Minister of Finance. Yesterday in the absence of the Minister, I had an interview with the Assistant Minister who stated that his Ministry was at present drafting a bill in the premises, that the details of which had not been settled, owing to the peculiar tariff now in force in the West Indies, but that it would probably increase the tariff in each of the islands to six per cent ad valorem. He further stated that the bill would be sent to the Rigsdag during the present month and that he expected favorable action before the Christmas recess. Later in the day I presented myself at the weekly reception of the Minister of Foreign Affairs and casually mentioned that I had heard a change in the West Indian tariff was contemplated. He replied that he had heard nothing about it. * * * I did not think it necessary to further question him on the matter.
The gradual economic and industrial decay of the Danish West Indies, in spite of subsidized steamship lines and other bounties, since the failure of the ratification of their sale to the United States, has become alarming. In addition their principal export, sugar, which went almost exclusively to the United States, has been almost entirely ruined by the Cuban reciprocity treaty.14 The port of St. Thomas has gradually fallen from its position as the principal harbor of the West Indies, while storms and bad management nave greatly hindered its rum and other minor industries. In order to lighten the burden of taxation, which under the existing conditions are becoming intolerable, and to pay for some contemplated improvements in public works, the colonial council, sitting recently at St. Thomas, unanimously decided to send a petition to [Page 553] the Minister of Finance here for the increase in the customs tariff. The tariff in force at St. Thomas is, apparently now three per cent ad valorem, while at St. Croix it is on another even smaller basis.
There is no doubt that the Rigsdag will approve almost any increase in the West Indian tariff. The Danish people have at least come to realize that something must be done to improve the desperate conditions in their West Indian colonies.
I have [etc.]
- Commercial Convention between the United States and Cuba of December 11, 1902. For. Rel. 1903, p. 375.↩