STATION   FOR SUBMARINE TELEGRAPH            CABLE.       1389 
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 
these 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 remainetc.,                              SANDFORD FLEMING. 
W. HEPWORTH MERCER. 
[Intlosure3.] 
Mr. Hatch to Messrs. Fleming and Mercer. 
DEPARTMENT OF FOREIGN AFFAIRS, 
Honolulu, October 17, 1894. 
DEAR SIRS: In acknowledging the receipt of your letter of this date, inclosing
a 
fair copy of the agreement proposed by you in the hope that it would prove

mutually satisfactory, I beg to again express my regret that this Government,
by 
the provisions of our treaty of reciprocity with the United States as we
read it, is 
at this time precluded from the consideration of the terms proposed. 
Our position is fully stated in the memorandum heretofore submitted to you,
a 
copy of which is inclosed as a part of this note., 
I desire to repeat the assurance that this Government is fully alive to the
import. 
ance to this country of telegraphic communication with North America, and
hope 
that the speedy settlement of all di fficulties of a diplomatic nature may
lead to the 
early consummation of this so long-desired project. 
Availing myself, etc.,                            FRAwcis M. HATcu. 
[Inclosure 1 to Inclosure 3.] 
Statement of the attitude of the Hawaiian cabinet in regard to the scheme
for laying a 
P4cific cable from Canada to Australia as submitted by Messrs. Mercer and
Fleming, 
representing the British, Canadian, and Australasian Governments. 
This undertaking being of such magnitude that it is apparent that to insure
suc- 
cess it must be conducted by or under the auspices of the British Government,
the 
proposition that the Hawaiian Government should grant a lease of Necker Island,

or some other uninhabited island of this group, as a cable station at once
raises the 
question of the power of the Hawaiian Government to act in the premises without

first obtaining the sanction of the United States. The treaty of reciprocity
between 
the United States of America and Hawaii has the following provision: 
"It is agreed on the part of His Hawaiian Majesty that so long as this
treaty shall 
remain in force he will not lease or otherwise dispose of, or create any
lien upon any 
port, harbor, or other territory in his ddminions, or grant any special privilege
or 
rights of use therein to any other power, state, or government, nor make
any treaty 
by which any other nation shall obtain the same privilege relative to the
admission 
of any articles free of duty hereby secnred to the United States." 
The Hawaiian cabinet do not feel disposed to enter upon.any considerations
of a 
verbal nature touching the extent of and scope of the above-quoted article.
Its 
intent is so clear that they feel it would be improper for them to enter
into any 
engagement in regard to the suggested lease of an island until the consent
of the 
United States has been obtained. 
The matter will be at once submitted to the United States Government. Upon

obtaining the approval of the United States, and a waiver in this instance
of the 
article above quoted, reference will be made to the Hawaiian Legislature
of the propo- 
sitions submitted by Messrs. Mercer and Fleming, which are embodied in the
draft 
memorandum hereto annexed. 
With such approval no possible objection by the Legislature is anticipated
to a 
lease of Necker Island, or any other uninhabited island of this group, upon
condi- 
tion that Honolulu is put into telegraphic connection with the main line,
and that 
fair rates, not out of proportion with the general tariff determined upon,
be given. 
The question of financial aid is exclusively within the province of the Legislature.

Upon this point it need only be said that the cabinet feel confident that
the Legis- 
lature will meet the matter in a spirit of liberality which its great and
unquestioned 
importance to the country at large demands. 
FRANCIS M. HATCHI.