File No. 711.5914/11
Minister Egan to the Secretary of State
Copenhagen , December 6, 1910 .
Sir: I have the honor to report that the tendency towards the sale of the Danish West Indies is growing here. The present party, Moderate, seems in for a longer lease of power than any other party [Page 565] can hope for, or has recently had. The financial condition of the Government is bad; no party dares to tax spirits or beer. Even the total abstainers are against this, consequently, to get money for old age pensions, etc., and for the carrying out of the defence program, will be difficult.
A curious circular has been sent out from an unknown source, urging a confederacy of all the islands near the coast of the United States. It simply indicates, as was suggested in my despatch No. 324, dated July 15, 1910, in regard to the exchange of Greenland, etc., that these islands are much in men’s minds here.
A few days ago I had a long conversation with Mr. Moses Melchior, who is financially interested in the Danish West Indies. He is highly respected here; he wants to sell, in order that the Santa Cruz cotton may be developed, and that the tariff may be lowered. I told Mr. Melchior that I should like to have the frank opinion of the Minister of Finance, Mr. Neergaard, on the subject of the sale of the islands. I know Mr. Neergaard very well, but I know also that, if I asked him this question, the matter would probably reach the Minister of Foreign Affairs, who is very careful about etiquette.
Yesterday Mr. Melchior came with the Minister of Finance’s answer to my suggested question:
- I.
- To offer to sell the islands now might injure Denmark’s chance of getting a loan of about 90,000,000 kroner, which is badly needed.
- II.
- The King is against the sale.
- III.
- If a proposition were made to the United States, a breakdown in the negotiation would ruin the present Government.
I am certain that His Majesty would not oppose the wishes of a majority in the Rigsdag.
Mr. Rudolf Schou, one of the officials of the Government, who was violently against the sale, said that, provided the amour-propre of Denmark was saved, by a treaty which might appear to give Denmark some commercial advantages, he thought, most of the traditional Conservatives would be in favor of the sale.
It would be useless to approach the subject at the Foreign Office here until public opinion is more formed.
I have [etc.]