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has been made to you by the Hawaiian Government to negotiate a Treaty with Great Britain upon the same basis as you are considering; however, the time occupied in communicating with I think it desirable that you should be made generally acquainted with the views of Her Majesty's Government in this matter.

As the case stands, you have, as reported in your Despatch No. 10 of the 21st of May last, fulfilled my instructions by informing the Hawaiian Government that when the proper time arrived it would be your duty to claim, under the 4th Article of the existing Treaty between Great Britain and the Sandwich Islands, any privileges which the Government of the Sandwich Islands may grant to the United States.

From your Despatch No. 10 of the 29th of April, it appears that this interpretation of the Article in question would not be accepted by the Hawaiian Government, who would contend that the right thereby secured to Great Britain is limited to the right to claim those similar advantages as accorded to the United States, only on condition that Great Britain should grant to the Sandwich Islands the same concessions as made by the United States.

Her Majesty's Government, however, contend that the stipulations of the Treaty cannot be thus interpreted. If the 3rd Article, which undoubtedly establishes conditional most favored Nation treatment, stood alone, such an interpretation might be considered.

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