Comly to H. A. P. Carter , His Hawaiian Majesty’s, July 8, 1878

No. 252. Mr. Comly to Mr. Evarts.

Sir: Referring to former instructions from the Secretary of State, I have the honor to report further progress in the Hawaiian negotiations with other nations arising from the reciprocity treaty with the United States.

The Hawaiian envoy, Mr. Carter, after visiting England, France, and Germany, has returned. He was successful in Germany, and without decided result as to England. No report as to France. Germany concedes that that government has no right to claim like privileges with the United States under a treaty which is based upon special reciprocal concessions for the mutual benefit of the two principals alone.

England has made no formal surrender of her claim to enjoy all the privileges of the reciprocity treaty under the parity clause of the Anglo-Hawaiian treaty, although she has made a proposition to abandon further proceedings without prejudice to existing rights, provided the Hawaiian Government will pledge itself not to lay a tariff of more than 10 per cent. ad valorem on any article of British product which is included in the free schedule of the reciprocity treaty for American goods.

This proposition, not being accepted by the Hawaiian envoy, was withdrawn. There is no doubt, however, that if legislative action can be brought to authorize it, this proposition will be renewed and accepted by the Hawaiian Government, and will end all difficulties. Whether such legislative action will happen is as difficult to predict as whether we shall have “rain o’ Wednesday.”

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The legislative committee on foreign relations was finally ordered to report on the whole subject without further delay. A minority report was made first. It is the work of Charles R. Bishop, chairman. He is an American by birth, a noble of this kingdom, and has held places of the highest trust. One native member of the committee signs with him. The majority report is said to have been written by Gibson, although not a member of the committee. It is signed by two natives and one half white.

The report of Henry A. P. Carter, the envoy in charge of the treaty business, was not handed in until after these reports were made. I inclose, also, one copy of it.

The envoy reports briefly and generally, giving results about as I have stated above.

The minority of the committee take substantially the same ground with that held by the United States with reference to the treaty rights of other nations growing out of the reciprocity treaty. The majority of the committee go further than Great Britain herself in claiming for that and other powers under the treaty. They report that “the Government of Hawaii has unquestionably violated the treaty between this country and Great Britain of the year 1851, and the violation has led to a question of our public safety, and has given rise to a state of interrupted good feeling between us and a nation which has always befriended us in the past.”

The Hawaiian Government is accordingly gravely censured by the committee. Referring to the somewhat peremptory notification of Major Wodehouse, that “Her Majesty’s Government cannot allow of British goods imported into the Sandwich Islands being subjected to treatment other than that which is accorded to similar goods of American origin,” and the points of Lord Derby’s letter, the majority of the committee concede that “these grounds of objection presented to our government are perfectly plain, and are such that we cannot well avoid them.” And they ask that the Assembly approve the British claim and provide for the repayment of all tariffs “improperly” levied on British goods, thus ordering Great Britian to be placed on an equality as to favors with the United States, without any equivalent whatever. The majority also denounce the course of the Hawaiian executive chiefs as “in direct opposition to the maintaining of Hawaiian independence.” And they attempt to show that Hawaii is a loser pecuniarily and otherwise by the reciprocity treaty with the United States. The whole tone of the report is unfriendly to the United States, while conceding more, even, than is now claimed by Great Britian. Major Wodehouse, the British commissioner, has very frankly explained to me, in a private conversation to which I was invited by him, the present posture of his government in the affair, even going so far as to show me his personal instructions from Lord Derby. This he did, as he told me, by permission or direction from that minister. If I understand him correctly, the British Government will let the whole matter drop if British goods are admitted at a rate not to exceed 10 per cent. ad valorem, i.e., a differential treatment of 10 per cent., as compared with American goods, admitted free. Lord Derby’s proposition was to attach the United States free schedule to a stipulation that British goods of same should not be required to pay more than 10 per cent. ad valorem, and that the denunciation of articles 3, 4, 5, and 6 of the Anglo-Hawaiian treaty should be withdrawn. The denunciation was withdrawn as to all except the last clause of the third article, but the engagement as to the amount of tariff to be paid by British goods could be made only by legislative action.

Finding such influences at work, in and out of the Legislative Assembly, threatening the integrity of the reciprocity treaty, I addressed the Hawaiian minister of foreign affairs on that subject. A copy of my letter is made Inclosure No. 4, herewith, and I respectfully ask attention to it.

Meantime, the various assaults upon the ministry culminated in a sudden decision by the King to dismiss the whole of them.

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In consequence of these changes my letter to the minister of foreign affairs passed over to the new ministry for consideration. I learned from a trustworthy source that the cabinet had already held a meeting for the discussion of the letter, when the new minister was excusing the delay in answering on the ground of occupation with other duties.

After several excuses of this sort I received the brief letter attached as Exhibit No. 5. I feel justified in claiming that this letter concedes my whole claim on behalf of the United States.

I am, &c.,