Schäffer affair
Mounting resistance of Native Hawaiians and American traders forced Schäffer to admit defeat and leave Hawaii in July 1817, before his triumphant reports from Kauai reached the Russian court.
Captain James Bennett was ordered by RAC Governor Alexander Andreyevich Baranov to use its estimated 100,000 roubles worth of furs and other cargo to purchase needed food and material supplies for settlers in Russian America.
The former physician of the RAC ship Suvorov, Georg Anton Schäffer, was appointed to command likely due to Baranov simply having no one else eligible at the time.
In a letter addressed to Kamehameha, Baranov warned of military intervention against Kaumalii if compensation for lost company goods didn't occur.
[5] Built in the traditional European star-shaped fortress out of stone and adobe, Fort Elizabeth was practically complete and armed with cannons by the end of 1817.
[5] Enthusiastically, Schäffer sent messages to Baranov and to imperial authorities in Saint Petersburg, requesting a naval expedition to protect what a contemporary called "his almost lunatic schemes.
[18] Kaumualii had no intention to forfeit his possessions; he manipulated Schäffer into "losing all touch with reality"[2] and used the Russians for his own benefit in his standoff with Kamehameha, planning to conquer more islands.
Early historians, starting with Otto von Kotzebue,[19] suggested that Kaumualii's revolt was prompted or even led by Schäffer[20] but, according to Mills, the chief "sought to align himself with any foreign power that could help him".
[21] Baranov wasn't inclined to finance such a war; he denied payment for the purchase of Avon and warned Schäffer against further political and business blunders.
[2] In December Schäffer received an unexpected "reinforcement": the Russian military brig Rurick captained by Otto von Kotzebue dropped anchor at Hawaii in the middle of a circumnavigation.
Kamehameha, unaware of Kotzebue's true disposition, manned the coast with 400 soldiers and militia volunteers, ready to repel the expected landing.
Kotzebue managed to persuade the king of his peaceful intentions, and made it clear that the Imperial government has nothing to do with Schäffer's delusions; he left without ever visiting his compatriots on Kauai.
[24] According to Schäffer's deputy Timofei Nikitich Tarakanov, the change in attitude was influenced by the Americans seeking to salvage prized sandalwood from the holds of the sinking Kadyak.
[25] During his brief stay in Rio, Schäffer obtained an audience with princess Maria Leopoldina, and presented his unique collection of natural exhibits from the Hawaii.
[26][22] The economic waste caused by Schäffer has been noted, with Americans profiting by supplying Russian America from Hawaii while the RAC was unable to exert control over the islands.
[22] The Board of the Company in Saint Petersburg received the first news of the Hawaiian affair in the spring of 1817 and on March 22 (April 3) instructions were sent to Baranov to dismiss Schäffer as soon as he completed his mission.
Schäffer's victorious reports of his treaty with Kuamualii were delivered to Saint Petersburg in August, and around the same time European newspapers picked up rumors of Russian expansion in the Pacific.
In December 1817 Nesselrode received von Lieven's report from London: according to the ambassador, the disadvantages and risks of a Russian protectorate over Kauai outweighed any possible gains.
February 24] 1818 Nesselrode and Tsar Alexander concurred with von Lieven, consequentially state support to RAC operations in Hawaii was denied.
[2] In the same month Kotzebue returned to Saint Petersburg, bringing bad news of the events that happened more than a year before; the directors received letters from Schäffer himself, the most recent dated April 1818, from Rio de Janeiro.
The Board of Directors was requested its opinion of pursuing such a project, agreeing that Hawaiian supplies would be of critical use to settlements in Russian America, Okhotsk and on the Kamchatka Peninsula.
