Kamehameha III promised protection to British subjects living in his dominions. They would receive any rights, privileges and immunities already granted, or later granted, to the most favored foreign nation. Giving another country's residents better terms would therefore extend those terms to British residents too. Similar clauses in other powers' agreements could spread the same privileges across several foreign communities.
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Most-favored-nation treatment protected British residents
The first article gave British subjects the best privileges Hawaii granted to any foreign nationality.