I don't think the Danish ambassador to the US said 'schnapps', he clearly meant 'snaps', which is somewhat different (and far more akin to Danish traditions). But I see this misquote often when reading about this story.

See: https://en.wikipedia.org/wiki/Snaps (In Danish, 'snaps' can really only be an Akvavit, unlike Schnapps, which is any strong alcoholic drink.)