Native Hawaiians on the other hand, according to Queen Liliʻuokalani in her autobiography, called her brother's reign "a golden age materially for Hawaii" and felt that the new constitution was imposed by a minority of the foreign population because of the king's refusal to renew the Reciprocity Treaty, which now included an amendment that would have allowed the US Navy to have a permanent naval base at Pearl Harbor in O'ahu, and the king's foreign policy.

In July 1889, there was a small scale rebellion, and Minister Merrill landed Marines to protect Americans; the State Department explicitly approved his action.

Believing her actions were supported by both her cabinet and her Native Hawaiian subjects, Liliʻuokalani drafted a new constitution that would restore the monarchy's authority and strip American and European residents of the suffrage they had obtained in 1887 by threat of force against King Kalakaua.

In response to Liliʻuokalani's attempt to promulgate a new constitution, a group of European and American residents formed a "Committee of Safety" on January 14, 1893, in opposition to the Queen and her plans.

The Blount Report was completed on July 17, 1893, and concluded that "United States diplomatic and military representatives had abused their authority and were responsible for the change in government.

President Cleveland stated "Substantial wrong has thus been done which a due regard for our national character as well as the rights of the injured people requires we should endeavor to repair the monarchy."

The report asserted that, "The complaint by Liliuokalani in the protest that she sent to the President of the United States and dated the 18th day of January, is not, in the opinion of the committee, well founded in fact or in justice.

"[12] After submission of the Morgan Report, Cleveland ended any efforts to reinstate the monarchy, and conducted normal diplomatic relations with the Provisional Government and later, the Republic of Hawaii.

Willis, against America's present neutrality toward Hawaii, threatened an amphibious invasion to force the Provisional Government to restore the Queen.

According to A History of Hawaiʻi by Professor Ralph Kuykendall, the 1895 counter-rebellion was also heavily financed by Chinese and Japanese immigrants, who had felt some loyalty to Queen Liliʻuokalani.