GIBSON, Minister of Foreign Affairs to Rollin M. Daggett , United States, December 10, 1883

Mr. Gibson to Mr. Daggett.

Sir: I beg to acknowledge the receipt of your excellency’s dispatch of 7th instant, No. 242, in which you recite certain services of the Pacific Mail Steamship Company in the Pacific Ocean in connection with the commerce of this Kingdom, and state that it is assumed by the company that the provisions of treaty obligations between Hawaii and the United States have been contravened, and that relief is asked by that corporation.

I cannot refrain, Mr. Minister, from expressing, on the part of His Majesty’s Government, their feeling of surprise that the Pacific Mail Steamship Company should enter a complaint against this Government and seek relief from the Government of the United States, The company has always received the most generous consideration from this Government, which has gone to the full limit of the means at its command for the purpose of encouraging the company’s enterprise in connection with these islands. Fifteen years ago, when the company proposed to allow the steamers of their China line to touch at this port, the Hawaiian Government, at the urgent request of the manager of the company, built a new and expensive wharf, constructed especially for their use, and therefore unsuitable for the other shipping which at that time used the wharves of Honolulu. Subsequently the contract for the mail line between Australia and San Francisco was taken up by this company, and they applied for a subsidy from the Hawaiian Government, in addition to the other valuble facilities and exemptions which were freely accorded to them. This application met with a ready response, and the Hawaiian Legislature has ever since made provisions for its continuance. From the beginning of the year 1876 up to the present date the company has received on this account $84,500. This I estimate to be equivalent to an annual subsidy of 20 cents per head from the population of these islands, or equal in proportion to what an annual payment of $10,000,000 would be to the people of the United States.

In addition to this subsidy the Government has extended the Esplanade wharf for their accommodation, placed extensive sheds upon it, and erected large stone warehouses in connection with it. The wharf and buildings are as entirely at the disposal of the company as if they were their own property, and even, under the circumstances, more advantageous to their interest than if owned by them.

In remission of wharfage, of custom-house charges, warehouse rent, storage of coal, and water charges, the company has enjoyed a further advantage equal to a subsidy of $35,600, besides which all cargo arriving by their steamers has been exempt from the wharfage charge of 25 cents per ton; and even now the agents of the company, by letter dated the 8th instant, have applied to this Government for an extension of the accommodation for the company’s storage of coal on the Esplanade, which has been granted entirely without charge, in accordance with the liberal spirit that has ever characterized the action of His Majesty’s Government towards this steamship company.

Therefore, I think, Mr. Minister, that it may be reasonably assumed, in view of this substantial assistance rendered by Hawaii to the Pacific Mail Steamship Company, that the latter might have seen reason to regard this country as enlightened and liberal in its action in the aid and encouragement of steamship enterprises, and might have been expected to submit their complaint directly to this Government for consideration.

His Majesty’s Government altogether disclaim any purpose of creating or permitting a discrimination against American vessels and American interests. A correct review of the events out of which the present complaint of the Pacific Mail Steamship Company has arisen will not warrant such an inference. About four months ago (August 18) His Majesty’s Government intimated to the agents of the Pacific Mail Steamship Company in Honolulu (and the letter of this date is the only authoritative assurance they ever had) that it would permit the carrying of Chinese immigrants to these islands in the vessels of their company (which are partly British vessels) and of the Oriental and Occidental Company (which are altogether British), on account of their superior character and sanitary management, as in contrast with a certain class that had been transporting immigrants previously. But the Government did not, and could not with propriety, enter into any agreement or contract in respect to this Chinese immigration for any period of time, as it was not an immigration promoted or regulated by the Government, and might (as it had already been) be stopped at any time for considerations of state. The object of thus indicating a preference for the time being was to avoid the risks of the introduction of contagious diseases from Chinese ports by other vessels, as had already happened. No definite agreement was entered into. Some time after this temporary arrangement had been made (subject to termination at any time on notice being given), proposals were addressed to the Government by a new steamship company, exclusively American in capital and in the construction of its vessels, and which engaged to make Honolulu its headquarters and to be in every respect a domestic Hawaiian line, which would afford the most ample opportunity during a period of days for the landing or quarantine control of passengers, and which would not, as in the case of the Pacific Mail and Occidental and Oriental ships sailing from Chinese ports, be too large to enter our harbor, and have to discharge passengers hurriedly, perhaps in the night time, outside the harbor. This new company, the Oceanic Steamship Company, requested to be permitted to undertake the Chinese or other Asiatic immigrant passenger traffic. In reply the Government has engaged that “in the event” of the company placing proper vessels in service for the Chinese trade, to afford them all the opportunity for the transportation of immigrant passengers that may properly be within the discretion of the Government. Ample notice of this new arrangement was given to the Pacific Mail Steamship Company.

The privilege, or rather opportunity, afforded by His Majesty’s Government cannot have been of great consequence to the Pacific Mail Steamship Company, since, after enjoying it for four months, they have not availed themselves of the permission nor brought a single Chinese immigrant directly from Hong-Kong to this Kingdom.

The statement made by the attorney of the Pacific Mail Steamship Company of an alleged transfer of a certain privilege or assumed franchise for the transportation of immigrant passengers to this Kingdom, I beg to say, is without the cognizance of His Majesty’s Government, and is not warranted by any authorization of this Government. Such a statement should form no part of the complaint of the company.

I make bold to submit, Mr. Minister, that there has been no contravention of the sixth or any other article of the treaty with the United States. Steam-vessels of the Republic, whether “employed by the Government of the said States” or” not so employed (as is, I believe, the case with the Pacific Mail Company’s boats, which touch at the ports of this Kingdom), have had “free access to the ports of the Sandwich Islands, with the privilege of stopping therein to refit, to refresh, to land passengers and their baggage, and for the transaction of any business pertaining to the public mail service of the United States,” and have not been subject in such ports to any duties of tonnage, harbor, light-houses, quarantine, or other similar duties; and have, moreover, been favored by the remission of many charges imposed upon other shipping, and have been liberally aided by grants of money that were generous in consideration of the resources of this country; and whatever discrimination has been contemplated was in accordance with the estimate of His Majesty’s Government of what was proper to be considered in connection with the immigration and sanitary measures of this country.

I hasten, Mr. Minister, to welcome with cordial regard the assurances that the instructions from your excellency’s Government in respect to a question with this Government are inspired by a spirit of the “largest friendship,” and I recognize that the dispatch of your excellency is the evidence of a friendly solicitude towards Hawaii on the part of the Government of the United States, and I beg to assure you that His Majesty’s Government are ever guided in their public action by a sense of obligation to a great and magnanimous neighboring state; and that it can never enter into their policy to discriminate unfavorably against American interests, or seek to contravene in the slightest degree the treaty obligations so happily maintained between the Republic of the United States and the Hawaiian Kingdom. I venture to believe that the perusal of what I have now had the honor to lay before your excellency will convince your Government that this assurance is not vain, and that the complaint of the Pacific Mail Steamship Company is without foundation.

I have, &c.,