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PUBLIC RECORD OFFICE
Reference :-
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C.O. 885
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ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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afraid to do anything that might possibly imperil the advantages they derive from the present treaty. On this account they feel obliged to refer the matter first to the United States' Government.
DEAR MR. HATCH,
I bave, &c.
A. G. S. HAWES.
Messrs. FLEMING and MERCER to Mr. HATCH.
Hawaiian Hotel, Honolulu, Hawaiian Islands, October 17, 1894.
We enclose a fair copy of the "Memorandum of Agreement" which is the result of our interviews with you, and which records the scheme arrived at, subject to the consent of the United States and the approval of the Legislature. We will explain to our Governments that you feel precluded from following up our interviews with any actual step in the matter until the consent of the United States has been obtained to waive the
We
will now you presume that requirements of Artic'e IV. of the Reciprocity Treaty. take the necessary steps with the view of bringing the proposed arrangement to the notice of the United States Government, and of ascertaining whether they will give We all, of course, hope that the desired consent so as to enable you to proceed with it. the Washington Government, on full explanations and proper representations being made to them, will be able to do this. By so enabling the scheme to be carried out, they would obtain for the United States people the advantage of telegraphic connexion with Honolulu, and, further, of exceedingly low telegraphic rates both to that place and to Australasia. These advantages would be secured without contributing to the capital required for the cable, or to the necessarily heavy subsidies or guarantees which will All considerations of have to be paid by all the countries to which the cable runs. this kind will, no doubt, be satisfactorily explained by your representative, but we may add that the United States Government have been for some time aware that the Governments of Great Britain and her Colonies have been discussing the project of a cable across the Pacific, from Vancouver to Australasia, with a connecting line from an unoccupied island in the Hawaiian Archipelago to Honolulu, and there can be little doubt that they will quite recognize the commercial advantages which, in no small measure, would accrue to the United States from the accomplishment of this undertaking.
It is by no means settled that the undertaking will, if it is determined upon, be carried out as a Government enterprise. It may be committed to a company with a subsidy or guarantee from the Government interested. In that case, the lease might be to the company, and not to the British or any other Government, and the case would then not come literally within the terms of your engagement in the treaty not to dispose of your lands to foreign Governments. But having regard to the circumstance that "foreign Governments "would have a substantial interest in the lease, we are quite in accord with your view that it is proper, whatever form the lease might take, to obtain the consent of the United States to the arrangement.
It is understood between us that, if the negotiations at Washington are successful, the Memorandum of Agreement will be submitted to your Legislature, and will be subject to their approval. We are, of course, sensible that you cannot guarantee that the Legislature will consent to the annual subsidy of 7,0001. The explanations which will have to be made to the Legislature on this and all other points will be in very good hands, and we need not be at pains to say more here than that the scheme would imply on our part the maintenance of two telegraph stations within your territory, one at Honolulu, and the other on the island leased, at a computed annual local expenditure of about 10,0007.; that the laying of so expensive a cable through the Hawaiian Islands would cause a considerable expenditure there out of the capital; and that this benefit would not cease with the construction of the cable, for it is considered that it would be necessary to keep at least two cable-repairing ships on the route for the purpose of maintaining the efficiency of the cable, one of which ships would generally be stationed at Honolulu. It need hardly be observed that the subsidy is asked for, not merely in consideration of the low tariff, but on the general ground that a heavy yearly deficit will have to be made up, for a greater or less period, by the parties interested. Your Legisla ture will, no doubt, take this consideration into account in considering the question of the subsidy. We do not conceal from you that another feasible route for the Canada- Australia cable is under consideration, and that the adoption of the Hawaiian route must be justified on financial and commercial grounds.
We propose to inform the British Government of your inquiry whether they would accept the sovereignty of Necker Island, or some other uninhabited island, on condition
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that no subsidy is required from you. As we explained, we have not felt at liberty to entertain that question ourselves, as we were definitely instructed not to ask for the sovereignty of any island, but only for a lease simply for the purposes of the cable.
We are prepared to recommend to our Governinents the acceptance of the terms stated in the Memorandum of Agreement, but we cannot undertake to say that the arrangement would be adopted if any material alteration were made in it.
We have, of course, treated our negotiations with you on this subject as strictly confidential. It is not, however, necessary, so far as we are concerned, to attach any character of secrecy to the proposals. We have been at great pains to make those proposals as moderate and as acceptable to you as possible, and we do not ourselves see any objection to public criticism upon them being invited. You are quite at liberty to make any use which you may think proper of this letter.
We have only to express, in conclusion, our appreciation of the great courtesy and kindness which we have received personally at the hands of yourself and your colleagues.
We remain, &c.
SANDFORD FLEMING. W. HEPWORTH Mercer,
MEMORANDUM OF AGREEMENT between the HAWAIIAN GOVERNMENT and RepresenTATIVES OF GREAT BRITAIN AND THE BRITISH COLONIES, made in Honolula in October 1894, with regard to the proposal to lay a Submarine Cable between Canada and Australasia, connected by a branch line with Honolulu.
SUBJECT to the conditions and stipulations herein-after set out, the Hawaiian Government agrees, if and when the laying of a submarine cable between Canada and Australasia shall be determined upon, to lease to the British Government and its assignces, herein-after called the lessees, either Necker Island, or French Frigate Shoal, or Bird Island, or other uninhabited island, whichever of them the British Government may select.
It is noted that the Hawaiian Government are debarred by their Reciprocity Treaty with the United States from leasing or otherwise disposing of any of their lands, or from granting any special privileges to any foreign Government, and it is therefore incumbent upon the Hawaiian Government to obtain the sanction of the United States Government as a condition precedent to the grant of the proposed lease.
The Hawaiian Government further agrees, for the consideration and stipulations herein-after expressed, to insert in the lease the following covenants :—
1. That the lease shall commence and take effect when a contract has been entered into for the laying of a cable from Canada to the island intended to be leased, and shall enure and continue until the cable und the connecting line to Honolulu are finally and permanently abandoned.
2. That exclusive possession free from disturbance shall be given, with exemption from all kinds of taxation.
3. That a convenient landing station and space for the accommodation of the telegraph office staff shall be provided at or near Honolulu for the purpose of laying and working a connecting cable between the island leased and Honolulu.
4. That an annual subsidy of 7,000/. shall be paid by the Hawaiian Government to the lessees for the period of fifteen years, payable half-yearly in two instalments, on the 30th June and the 30th December (or such other fixed dates as may be determined upon by the Hawaiian Government), the first payment to be made on the first of such dates as shall occur after cable communication has been established between Honolulu and Canada. In consideration for the lease and the covenants given by the Hawaiian Governmont, the following covenants will be required from the lessees :-
1. That a cable shall be laid from the island leased to Honolulu, so as to connect that place telegraphically with all points on the main cable.
2. That telegraphic messages shall be sent from Honolulu to the first landing station on the Canadian coast at the following rates per word, viz.: in the case of private messages, 18.; in the case of Government messages, 9d.; in the case of press messages 6d.; provided always that no less charge shall be made than 108. (2 dol. 2 c.) for any one message. And farther, that persons telegraphing at Honolulu shall be given the full benefit of such rates as may be established by agreement with other countries or companies to all points beyond.
3. That the island leased shall not be fortified or used as a naval station, or for any purpose whatever not connected with the working and maintenance of the cable.
✪ 83769.
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