File No. 711. 5914/15

Minister Egan to the Secretary of State

No. 448

Sir: Referring to my despatch No. 444, of July 21, 1911, I have the honor to enclose newspaper clippings containing an article which appeared in Social-Demokraten, a Copenhagen newspaper, on August 6, 1911, on the subject of the sale of the Danish West India Islands. I also send translation of the article.

I have [etc.]

Maurice Francis Egan
[Inclosure–Translation]

the danish west india islands

Hamburg no longer cares whether St. Thomas is a Danish possession—Will America buy the islands?

Some time ago we wrote that a Hamburg paper, the Hamburger Fremdenblatt, had been much interested in the question of our West India Islands, particularly St. Thomas. This paper declared that Denmark was not capable of making the harbor of St. Thomas of sufficient importance, particularly in connection with [Page 574] the near completion of the Panama Canal, and made the statement that the island would be taken over by the United States.

That a Hamburg paper, so closely connected with all shipping interests, should write in that tone, created quite a sensation. It is a well known fact that the Hamburg ship owners, particularly the Hamburg-American Line, during 1902, were keenly interested in the fact that Denmark should keep the West India Islands. Furthermore, there is no doubt that it was the influence of the Hamburg-American Line, brought to bear on our East Asiatic Company that put itself at the head of a patriotic movement against the sale of the islands. It was also this company’s former committee member, Deuntzer, who, acting as Minister of Foreign Affairs, put a stop to the sale. Finally, there can be no doubt that the director of the Hamburg-American Line, Max Ballin, during those troubled and anxious days, and owing to his friendship with the Emperor William, started the friendly relations between the German and the Danish courts, relations which caused a great sensation, due to being so unexpected and of such excessive warmth.

In 1902 it was of vital importance to German shipping interests in the West Indies that Denmark should keep St. Thomas. At that time the German trade had a widely spread field of action in the West Indies and in South America, but there was a feeling of unsafety due to not possessing a harbor of its own, belonging to a Power whose trade would not compete with its own. St. Thomas was just the basis needed by the German ships, particularly the Hamburg-American Line. It was for this reason that this line exercised itself to the utmost to the end that St. Thomas should remain a Danish possession. It was in reality the influence of the German ship owners that prohibited the sale, a result which the patriots of Denmark naively imagined they had accomplished.

It is no wonder, therefore, when the Hamburg paper this year (1911) spoke so slightingly of Denmark’s supremacy in these islands, that one should think that something had happened during the past nine years to change the attitude of Germany, or that possibly the Germans had their eyes on something better. This surmise has already been confirmed by the report of the journalist Johs. Hoeck, sent to the Danish paper Vort Land, in which he describes the plans the Hamburg interests are making for a harbor in the vicinity of the Panama Canal, in Colombia, South America, the frontier of which reaches to the Republic of Panama, formerly a part of Colombia. Mr. Hoeck’s information is neither explicit nor comprehensive, though one is informed that he has seen extensive work going on in the harbor at the mouth of the river Atrato, which empties into the Atlantic Ocean; and that railway lines are springing up in hitherto unknown regions. He also states that concessions from the Colombian Government to begin these works have been obtained by Hamburg parties; that they have paid cash for the concessions; that the harbor is to be called Port Cesar; and that the greatest care is taken to conceal all these plans from the rest of the world. From all this one can easily understand why the Hamburg paper writes with so much superiority and so openly regarding Denmark, stating that now there is no obstacle to the sale of St. Thomas to the United States of America.

Without doubt, the Germans have other projects for harbors in the West India seas, among these, plans for a basis on one of the West India Islands. Our readers may remember that about a fortnight ago there was talk of a revolution in Haiti, the large West India island which is an independent negro republic. The President has been driven away by the rebels. Since then the rebels have divided into two parties, one having as candidate for the presidency General Firmin, the other General Leconte. Everything points to the fact that American interests are with Firmin, German interests, with Leconte. The latter was once Haiti’s Ambassador to Germany, and Germany has already shown her lively interest in the revolution by sending a man-of-war to Haiti. This has roused the wrath of the Americans and we are not surprised that they should disclose to us the fact that Leconte is a mere puppet in the hands of German capitalist. If one takes part in a revolution it is always with the noblest motives, but when it is a question of one’s opponent, one is never slow to disclose the real motive behind it all.

The following telegram is from Washington: “According to the latest information received here, the revolution now going on in Haiti is considered of much greater importance than any former rebellion in the black republic. Between General Leconte, who has proclaimed himself president (the German candidate does it himself, of course, while the American candidate is proposed by an enormous popular movement.—Editor’s note.) and a syndicate of German bankers, there is said to be an agreement by which the syndicate has pledged itself to pay one million kroner into a bank at Port au Prince for General Leconte’s disposal. When Leconte enters upon his Government this sum will be looked [Page 575] upon as Haiti’s Government debt. If he is chosen president, Leconte has pledged himself to grant the syndicate the following monopolies: 1st—the working of the Haiti mines; 2d—a monopoly of the coaling stations, partly at St. Nicolas and partly at another point of the island; 3d—denial of trade privileges to all states whose trade compete with Germany.”

It is very likely that the Americans exaggerated a good deal in their report of the Germans’ cunning plans and that they wish to excite a feeling against them. But certain it is, these disclosures point in the right direction. Harbors and metal, particularly iron, are just what the Germans always look for in foreign countries; and even before this information came to hand, an attentive observer might have said to himself: “Something is brewing here. An Ambassador from Germany at the head of a revolution. A German warship on the coast of a foreign republic, in seas where it is of the greatest interest for Germans to have a point of vantage! All this makes us suspect secret treaties are being held by bank directors, ship owners and diplomats.”

Naturally we are interested in all this through the ultimate fate of our West India Islands. We do not know if any effort has been made by the Hamburg interests to make the harbor of St. Thomas more modern while still belonging to Denmark. As far as known by us, there are concessions of an older date concerning the harbor which would clash with any new alterations. Of course, this might be arranged in a monetary way. The question is this, whether, since 1902, the Hamburg interests have looked upon Denmark’s possession as temporary, or whether they have felt certain all along that the United States would eventually buy them. Perhaps on this account the German interests have taken no steps towards modernizing the harbor and have been constantly on the lookout for other ways of handling their commerce.

The question of the sale of the islands will naturally come to the front again, but unfortunately it will not be brought forward until we are overwhelmed by the burden of our new enormous taxes. First we shall have to pay the enormous military expenses, then the sale of the islands will bring us fresh money, for new fortifications. We are quite sure that the next time an offer is made to buy these islands no “patriotic” movement will be made,—the naїves will, perhaps, appear on the scene again, but the bank directors will not. The words of Shakespeare: “The Moor has done his duty, the Moor may leave”, will then fit the case of our “black brethren” most nicely.