Hawaii, state, United States: Development of the Sugar Industry

Development of the Sugar Industry

In 1848 the islands' feudal land system was abolished, making private ownership possible and thereby encouraging capital investment in the land. By this time the sugar industry, which had been introduced in the 1830s, was well established. Hawaiian sugar gained a favored position in U.S. markets under a reciprocity treaty made with the United States in 1875. The treaty was renewed in 1884 but not ratified. Ratification came in 1887 when an amendment was added giving the United States exclusive right to establish a naval base at Pearl Harbor. The amount of sugar exported to the United States increased greatly, and American businessmen began to invest in the Hawaiian sugar industry. Along with the Hawaiians in the industry, they came to exert powerful influence over the islands' economy and government, a dominance that was to last until World War II.

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