Heligoland
British ships, would be a necessary key to such a plan.
    Inauspiciously, he had made no mention of the wishes of the islanders.
    ‘I suppose that the cession of Gibraltar would strengthen our good relations with Spain!’ retorted Granville gruffly, quite astonished by this audacious request. Nervously, Münster took his words to mean that Granville was ill-disposed towards the scheme. Granville declined to commit himself to any expression of opinion upon a question so controversial, and it was agreed that the matter should, for the present, go no further. Münster begged Granville not to discuss his request with any other British ministers, and believed that his request had been adhered to. In fact, Granville reported it to Gladstone. On 24 May, just a fortnight after the meeting, Bismarck told Münster to drop the request because the timing did not seem right. At the time he remarked confidentially to an assistant, Count Hatzfeldt, that Germany had no legitimate claim to the island. Bismarck wrote: ‘I pressed Count Münster strongly today to say no more about Heligoland, for a desire of this kind can only be presented to a nation when it is in friendly mood towards us. Our wishes regarding Heligoland rest on no legal basis and would drag down our justified demands regarding overseas affairs to the same level, if they were lumped together for public discussion.’ 15 Bismarck too failed to mention the well-being or the wishes of the islanders. Lord Derby had an inkling that Bismarck might offer Britain a certain part of Africa in exchange for Heligoland.
    The sudden and unexpected death that week of Lord Odo Russell, a popular British ambassador in Berlin for the past thirteen years, caused a serious break in the functions of the Embassy because the good understanding between Britain and Germany had tended to hinge on his personality. In January 1885 the question of Heligoland was again opened by Münster, acting on instructions from Berlin, but with the same result. What Bismarck did not know was that had he persisted he might have achieved what he wanted. Granville wrote to Gladstone, regarding this repeat request: ‘Count Münster said that he would put the question to us in a few days. I was prepared with an answer had he done so. I should have told him that I had mentioned the subject to Mr Gladstone alone, and that when current political questions were settled we should be prepared to give a friendly consideration to the question.’ 16 Evidently then, in 1885, the Liberal government was contemplating a graceful surrender. But the time did not seem quite right and so nothing happened.
    The island thus remained caught between the two powerful nations with their widely contrasting perceptions: Britain saw no necessity at all to spend money on fortifications and a proper harbour, while Germany saw every need, to ensure its security. And yet Heligoland itself was progressing from strength to strength. By 1890 the island was free of debt. Sir Terence O’Brien, an energetic and popular governor, presided over a period of economic success, albeit as a consequence of the sound fiscal foundations established in Governor Maxse’s time. The key to Heligoland’s new prosperity was the now established ability to collect revenue through local taxation, which meant the colony’s debt could be eliminated. As its financial position improved, O’Brien even succeeded in extracting a £2,000 grant from the UK Treasury for much-needed capital projects and public works.
    The large bathing establishment had fallen into decay and had been purchased by the community from its previous owners; it was rebuilt in a modern form with swimming baths added. A vertical lift was built to carry passengers and goods between the lower and upper towns. All the principal streets were re-paved and public lighting was improved; a new pier was erected for £700, which provided visitors with something of a promenade. Also built were the Conversation

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