File No. 711. 5914/162

Minister Egan to the Secretary of State

No. 959

Sir: With reference to the Legation’s telegram No. 352 of September 26, 1916, I have the honor to transmit a memorandum, carefully made by the Minister of Finance, concerning the privileges of the West India Company at St. Thomas. Attached to this I likewise enclose copies of the pamphlets containing passages mentioned in the memorandum. The memorandum, translated by us, was sent to the Department yesterday by cable.

I have [etc.]

Maurice Francis Egan
[Page 679]
[Inclosure 1—Memorandum—Translation]

[Untitled]

In a note of August 25th last the American Minister here stated that the American Consul in St. Thomas had reported:

(1)
That the West Indian Company, according to a declaration from Captain Berg, maintains that the sole and exclusive privilege of supplying ships in St. Thomas’ harbor with liquid fuel is vested in the said company,
(2)
That the company has an agreement with the Government regarding the future water supply of the town and St. Thomas harbor and,
(3)
That it is not subjected to taxation by the colonial Government. In pursuance of the aforesaid the Legation has requested the Danish Government to state whether it considers the said privileges as incorporated in the company’s concession.

After having been in telegraphic communication with the Government of the Danish West India Islands in so far as question (2) and (3) are concerned, we beg to furnish the following information:

(1) The sole and exclusive privilege of supplying ships in St. Thomas harbor with liquid fuel has never been conferred on the West India Company.

In a communication in writing of April 16th 1913 from the Minister of Finance to the West India Company of which communication a copy has been submitted to the Government of the United States by the Foreign Office the Ministry has stated: “that the Ministry—within a period as to the extent of which the company is requested to submit a proposal, and provided that the company’s plant proves sufficient to accommodate the expected traffic—will be willing to promise not to grant concession to other companies to carry on commercial or industrial enterprises or shipping trade in St. Thomas harbor.” The Ministry has not been called upon to give such promise, nor has it given any, and even if given, it would not, according to the terms cited above, confer any privilege for the sale of liquid fuel, but would only be a privilege to establish plants in St. Thomas harbor of the kinds mentioned above.

(2) No agreement has been made with the West India Company regarding the future water supply of Charlotte Amalie and St. Thomas harbor.

(3) The West India Company has not been specially exempted from paying dues, but has like other concerns been granted reductions in the payment of harbor dues in accordance with Sec. 30, Subsection 2 of Ordinance No. 24 of August 6, 1914, regarding payment of duty and harbor dues in St. Thomas and St. Jan, and Supplement of February 25, 1916, to the said Ordinance; in addition thereto the Colonial Government has granted the company exemption from payment of duties and conceded to it the right to store goods in warehouses without payment of any dues on certain conditions (in pursuance of Sec. 7, Sub-sect. 3 and 7 of Act No. 64 of April 1st, 1914 regarding exemption from the payment of customs duty and harbor dues in St. Thomas and St. Jan); finally attention is called to Ordinance No. 16 of April 1st 1913 regarding exemption from payment of duty and of harbor dues for materials imported for the establishment of plants in and near St. Thomas harbor. Copies of the aforesaid ordinance are enclosed. As stated before, the West India Company has never been granted other concessions than such as might have been and actually have been granted to others.

[Inclosure 2—Translation]

Sec. 30, Subsec. 2, Ordinance No. 24, of Aug. 6, 1914, regarding payment of duty and harbor dues in St. Thomas and St. Jan.

The Government is authorized:

1.
* * *
2.
To grant a reduction in harbor dues on goods transferred directly from ship to ship, made applicable also to goods such as those mentioned in S. 2, No. 4, of Law No. 64 of April 1, 1914, on customs duties and harbor dues in St. Thomas and St. Jan, even if they are not transferred directly from ship to ship, but are deposited meantime in a warehouse of a steamship company or wharf owner, provided the storage takes place under conditions guaranteeing against abuse.

Sec. 7, Subsecs. 3 and 7, of Act No. 64 of April 1, 1914, regarding exemption, etc.

The Government is authorized:

1.
* * *
2.
* * *
3.
To grant exemption from customs duty on goods transferred directly from ship to ship and on goods such as those mentioned in S. 2, No. 4, even if they are not transferred directly from ship to ship, but are meanwhile deposited in a warehouse of a steamship company or wharf owner, provided the storage takes place under conditions guaranteeing against abuse.
4—6.
* * *
7.
To grant storage in bond (duty free storage under customs supervision) in private warehouses, of such goods as are imported for temporary storage and are intended for reexportation.

As security for the import duty to be paid on the stored goods if not reexported, the customs treasury shall have a first mortgage lien on the stored goods and a right of preference, for payment, over all other property, goods, and effects of the receiver of the goods. The Government may stipulate that further security shall also be furnished.

If the goods are not reexported within 2 years after importation, the import duty must be paid immediately; however, upon a request being presented in due time, the Government may grant an extension of duty free storage not to exceed one year at a time.

The receiver of the goods (consignee) must submit to such supervision over the stored goods and their importation and exportation as the customs authorities may deem necessary, and bear all expenses connected therewith. However, the Government may grant relaxations in this supervision, taking into consideration the rules of a like character prevailing in the surrounding harbors.

The consignee shall be responsible for any irregularities connected with the storage of the goods, in accordance with the provisions contained in laws or regulations.

Supplement of February 25, 1916, to the ordinance regarding customs duties and harbor dues in St. Thomas and St. Jan, of Aug. 6, 1914.

We, Christian Tenth, etc.

The following shall be added to S. 30:

3. To grant a reduction in the harbor dues on goods transferred directly from ship to ship, made applicable also to goods stored under favor such as mentioned in No. 7, S. 7, of Law No. 64 of Apr. 1, 1914, on customs duties and harbor dues in St. Thomas and St. Jan; provided, however, that the full harbor dues shall Be paid in the case cited under No. 4 of said provision.

No. 4 reads: 4. To grant duty-free importation of postal parcels sent to warships in sealed mail bags according to the Universal Postal Convention.

Ordinance No. 16 of 1913, on the exemption from customs duties and harbor dues of materials imported for the establishment of plants in and near St. Thomas harbor.

April 1, 1913.

We, Christian Tenth, etc.

The Government is authorized, for a period of 10 years, beginning Jan. 1, 1913, to grant exemption from customs duties and harbor dues on all materials, including working tools and machinery, imported into St. Thomas for the establishment there of considerable plants which are designed for the purpose of supplying or serving ships entering the harbor, or which are otherwise adapted to promote navigation in the harbor, etc.