In my last annual message I adverted to the claim of the Austro-Hungarian

Government for indemnity for the killing of certain Austrian and Hungarian

subjects by the authorities of the State of Pennsylvania, at Lattimer,

while suppressing an unlawful tumult of miners, September 10, 1897. In view

of the verdict of acquittal rendered by the court before which the sheriff

and his deputies were tried for murder, and following the established

doctrine that the Government may not be held accountable for injuries

suffered by individuals at the hands of the public authorities while acting

in the line of duty in suppressing disturbance of the public peace, this

Government, after due consideration of the claim advanced by the

Austro-Hungarian Government, was constrained to decline liability to

indemnify the sufferers.

It is gratifying to be able to announce that the Belgian Government has

mitigated the restrictions on the importation of cattle from the United

States, to which I referred in my last annual message.

Having been invited by Belgium to participate in a congress, held at

Brussels, to revise the provisions of the general act Of July 2, 1890, for

the repression of the African slave trade, to which the United States was a

signatory party, this Government preferred not to be represented by a

plenipotentiary, but reserved the right of accession to the result. Notable

changes were made, those especially concerning this country being in the

line of the increased restriction of the deleterious trade in spirituous

liquors with the native tribes, which this Government has from the outset

urgently advocated. The amended general act will be laid before the Senate,

with a view to its advice and consent.

Early in the year the peace of Bolivia was disturbed by a successful

insurrection. The United States minister remained at his post, attending to

the American interests in that quarter, and using besides his good offices

for the protection of the interests of British subjects in the absence of

their national representative. On the establishment of the new Government,

our minister was directed to enter into relations therewith.

General Pando was elected President of Bolivia on October 23.

Our representative has been instructed to use all permissible friendly

endeavors to induce the Government of Bolivia to amend its marriage laws so

as to give legal status to the non-Catholic and civil marriages of aliens

within its jurisdiction, and strong hopes are entertained that the Bolivian

law in this regard will be brought, as was that of Peru some years ago,

into harmony with the general practice of modern States.

A convention of extradition with Brazil, signed May 14, 1897, has been

ratified by the Brazilian Legislature.

During the past summer two national ships of the United States have visited

Brazilian ports on a friendly mission and been cordially received. The

voyage of the Wilmington up the Amazon River gave rise to a passing

misunderstanding, owing to confusion in obtaining permission to visit the

interior and make surveys in the general interest of navigation, but the

incident found a ready adjustment in harmony with the close relations of

amity which this Government has always sedulously sought to cultivate with

the commonwealths of the Western Continent.

The claim growing out of the seizure of the American-owned newspaper "The

Panama Star and Herald" by the authorities of Colombia has been settled,

after a controversy of several years, by an agreement assessing at $30,000

the indemnity to be paid by the Colombian Government, in three installments

of $10,000 each.

The good will of Colombia toward our country has been testified anew by the

cordial extension of facilities to the Nicaraguan Canal Commission in their

approaching investigation of the Panama Canal and other projected routes

across the Isthmus of Darien.

Toward the end of October an insurrectionary disturbance developed in the

Colombian Republic. This movement has thus far not attained any decisive

result and is still in progress.

Discussion of the questions raised by the action of Denmark in imposing

restrictions on the importation of American meats has continued without

substantial result in our favor.

The neighboring island Republic of Santo Domingo has lately been the scene

of revolution, following a long period of tranquility. It began with the

killing of President Heureaux in July last, and culminated in the

relinquishment by the succeeding Vice-President of the reins of government

to the insurgents. The first act of the provisional government was the

calling of a presidential and constituent election. Juan Isidro Jimenez,

having been elected President, was inaugurated on the 14th of November.

Relations have been entered into with the newly established Government.

The experimental association of Nicaragua, Honduras, and Salvador, tinder

the title of the Greater Republic of Central America, when apparently on

the threshold of a complete federal organization by the adoption of a

constitution and the formation of a national legislature, was disrupted in

the last days of November, 1898, by the withdrawal of Salvador. Thereupon

Nicaragua and Honduras abandoned the joint compact, each resuming its

former independent sovereignty. This was followed by the reception of

Minister Merry by the Republics of Nicaragua and Salvador, while Minister

Hunter in turn presented his credentials to the Government of Honduras,

thus reverting to the old distribution of the diplomatic agencies of the

United States in Central America for which our existing statutes provide. A

Nicaraguan envoy has been accredited to the United States.

An insurrectionary movement, under General Reyes, broke out at Bluefields

in February last, and for a time exercised actual control in the Mosquito

Territory. The Detroit was promptly sent thither for the protection of

American interests. After a few weeks the Reyes government renounced the

conflict, giving place to the restored supremacy of Nicaragua. During the

interregnum certain public dues accruing under Nicaraguan law were

collected from American merchants by the authorities for the time being in

effective administrative control. Upon the titular government regaining

power, a second payment of these dues was demanded. Controversy arose

touching the validity of the original payment of the debt to the de facto

regent of the territory. An arrangement was effected in April last by the

United States minister and the foreign secretary of Nicaragua whereby the

amounts of the duplicate payments were deposited with the British consul

pending an adjustment of the matter by direct agreement between the

Governments of the United States and Nicaragua. The controversy is still

unsettled.

The contract of the Maritime Canal Company of Nicaragua was declared

forfeited by the Nicaraguan Government on the Tenth of October, on the

ground of nonfulfillment within the ten years' term stipulated in the

contract. The Maritime Canal Company has lodged a protest against this

action, alleging rights in the premises which appear worthy of

consideration. This Government expects that Nicaragua will afford the

protestants a full and fair hearing upon the merits of the case.

The Nicaragua Canal Commission, which had been engaged upon the work of

examination and survey for a ship-canal route across Nicaragua, having

completed its labors and made its report, was dissolved on May P, and on

June To a new commission, known as the Isthmian Canal Commission, was

organized under the terms of the act approved March 3, 1899, for the

purpose of examining the American Isthmus with a view to determining the

most practicable and feasible route for a ship canal across that Isthmus,

with its probable cost, and other essential details.

This Commission, under the presidency of Rear-Admiral John G. Walker, U. S.

N. (retired), entered promptly upon the work intrusted to it, and is now

carrying on examinations in Nicaragua along the route of the Panama Canal,

and in Darien from the Atlantic, in the neighborhood of the Atrato River,

to the Bay of Panama, on the Pacific side. Good progress has been made, but

under the law a comprehensive and complete investigation is called for,

which will require much labor and considerable time for its accomplishment.

The work will be prosecuted as expeditiously as possible and a report made

at the earliest practicable date.

The great importance of this work cannot be too often or too strongly

pressed upon the attention of the Congress. In my message of a year ago I

expressed my views of the necessity of a canal which would link the two

great oceans, to which I again invite your consideration. The reasons then

presented for early action are even stronger now.

A pleasing incident in the relations of this Government with that of Chile

occurred in the generous assistance given to the war ship Newark when in

distress in Chilean waters. Not alone in this way has the friendly

disposition of Chile found expression. That country has acceded to the

convention for the establishment of the Bureau of the American Republics,

in which organization every independent State of the continent now shares.

The exchange of ratifications of a convention for the revival of the United

States and Chilean Claims Commission and for the adjudication of claims

heretofore presented but not determined during the life of the previous

Commission has been delayed by reason of the necessity for fresh action by

the Chilean Senate upon the amendments attached to the ratification of the

treaty by the United States Senate. This formality is soon to be

accomplished.

In view of disturbances in the populous provinces of northern China, where

are many of our citizens, and of the imminence of disorder near the capital

and toward the seaboard, a guard of marines was landed from the Boston and

stationed during last winter in the legation compound at Peking. With the

restoration of order this protection was withdrawn.

The interests of our citizens in that vast Empire have not been neglected

during the past year. Adequate protection has been secured for our

missionaries and some injuries to their property have been redressed.

American capital has sought and found various opportunities of competing to

carry out the internal improvements which the Imperial Government is wisely

encouraging, and to develop the natural resources of the Empire. Our trade

with China has continued to grow, and our commercial rights under existing

treaties have been everywhere maintained during the past year, as they will

be in the future.

The extension of the area open to international foreign settlement at

Shanghai and the opening of the ports of Nanking, Tsing-tao (Kiao chao),

and Ta-lien-wan to foreign trade and settlement will doubtless afford

American enterprise additional facilities and new fields, of which it will

not be slow to take advantage.

In my message to Congress of December 5, 1898, I urged that the

recommendation which had been made to the Speaker of the House of

Representatives by the Secretary of the Treasury on the 14th of June, 1898,

for an appropriation for a commission to study the commercial and

industrial conditions in the Chinese Empire and report as to the

opportunities for, and obstacles to, the enlargement of markets in China

for the raw products and manufactures of the United States, should receive

at your hands the consideration which its importance and timeliness

merited, but the Congress failed to take action.

I now renew this recommendation, as the importance of the subject has

steadily grown since it was first submitted to you, and no time should be

lost in studying for ourselves the resources of this great field for

American trade and enterprise.

The death of President Faure in February last called forth those sincere

expressions of sympathy which befit the relations of two Republics as

closely allied by unbroken historic ties as are the United States and

France.

Preparations for the representation of the industries, arts, and products

of the United States at the World's Exposition to be held in Paris next

year continue on an elaborate and comprehensive scale, thanks to the

generous appropriation provided by Congress and to the friendly interest

the French Government has shown in furthering a typical exhibit of American

progress.

There has been allotted to the United States a considerable addition of

space, which, while placing our country in the first rant among exhibitors,

does not suffice to meet the increasingly urgent demands of our

manufacturers. The efforts of the Commissioner General are ably directed

toward a strictly representative display of all that most

characteristically marks American achievement in the inventive arts, and

most adequately shows the excellence of our natural productions.

In this age of keen rivalry among nations for mastery in commerce, the

doctrine of evolution and the rule of the survival of the fittest must be

as inexorable in their operation as they are positive in the results they

bring about. The place won in the struggle by an industrial people can only

be held by unrelaxed endeavor and constant advance in achievement. The

present extraordinary impetus in every line of American exportation and the

astounding increase in the volume and value of our share in the world's

markets may not be attributed to accidental conditions.

The reasons are not far to seek. They lie deep in our national character

and find expression year by year in every branch of handicraft, in every

new device whereby the materials we so abundantly produce are subdued to

the artisan's will and made to yield the largest, most practical, and most

beneficial return. The American exhibit at Paris should, and I am confident

will, be an open volume, whose lessons of skillfully directed endeavor,

unfaltering energy, and consummate performance may be read by all on every

page, thus spreading abroad a clearer knowledge of the worth of our

productions and the justice of our claim to an important place in the marts

of the world. To accomplish this by judicious selection, by recognition of

paramount merit in whatever walk of trade or manufacture it may appear, and

by orderly classification and attractive installation is the task of our

Commission.

The United States Government building is approaching completion, and no

effort will be spared to make it worthy, in beauty of architectural plan

and in completeness of display, to represent our nation. It has been

suggested that a permanent building of similar or appropriate design be

erected on a convenient site, already given by the municipality, near the

exposition grounds, to serve in commemoration of the part taken by this

country in this great enterprise, as an American National Institute, for

our countrymen resorting to Paris for study.

I am informed by our Commissioner-General that we shall have in the

American sections at Paris over 7,000 exhibitors, from every State ill our

country, a number ten times as great as those which were represented at

Vienna in 1873, six times as many as those in Paris in 1878, and four times

as many as those who exhibited in Paris in 1889. This statement does not

include the exhibits from either Cuba, Puerto Rico, or Hawaii, for which

arrangements have been made.

A number of important international congresses on special topics affecting

public interests are proposed to be held in Paris next summer in connection

with the exposition. Effort will be made to have the several technical

branches of our administration efficiently represented at those

conferences, each in its special line, and to procure the largest possible

concourse of State representatives, particularly at the Congresses of

Public Charity and Medicine.

Our relations with Germany continue to be most cordial. The increasing

intimacy of direct association has been marked during the year by the

granting permission in April for the landing on our shores of a cable from

Borkum Emden, on the North Sea, by way of the Azores, and also by the

conclusion on September 2 of a Parcels Post Convention with the German

Empire. In all that promises closer relations of intercourse and commerce

and a better understanding between two races having so many traits in

common, Germany can be assured of the most cordial cooperation of this

Government and people. We may be rivals in many material paths, but our

rivalry should be generous and open, ever aiming toward the attainment of

larger results and the mutually beneficial advancement of each in the line

of its especial adaptabilities.

The several governments of the Empire seem reluctant to admit the natural

excellence of our food productions and to accept the evidence we constantly

tender of the care with which their purity is guarded by rigid inspection

from the farm, through the slaughterhouse and the packing establishments,

to the port of shipment. Our system of control over exported food staples

invites examination from any quarter and challenges respect by its

efficient thoroughness.

It is to be hoped that in time the two Governments will act in common

accord toward the realization of their common purpose to safeguard the

public health and to insure the purity and wholesomeness of all food

products imported by either country from the other. Were the Congress to

authorize an invitation to Germany, in connection with the pending

reciprocity negotiations, for the constitution of a joint commission of

scientific experts and practical men of affairs to conduct a searching

investigation of food production and exportation in both countries and

report to their respective legislatures for the adoption of such remedial

measures as they might recommend for either, the way might be opened for

the desirable result indicated.

Efforts to obtain for American life insurance companies a full hearing as

to their business operations in Prussia have, after several years of

patient representation, happily succeeded, and one of the most important

American companies has been granted a concession to continue business in

that Kingdom.

I am also glad to announce that the German insurance companies have been

readmitted by the superintendent of insurance to do business in the State

of New York.

Subsequent to the exchange of our peace treaty with Spain, Germany acquired

the Caroline Islands by purchase, paying therefore $5,000,000. Assurances

have been received from the German Government that the rights of American

missionaries and traders there will be considerately observed.

In my last annual message I referred to the pending negotiations with Great

Britain in respect to the Dominion of Canada. By means of an executive

agreement, a joint High Commission had been created for the purpose of

adjusting all unsettled questions between the United States and Canada,

embracing twelve subjects, among which were the questions of the fur seals,

the fisheries of the coast and contiguous inland waters, the Alaskan

boundary, the transit of merchandise in bond, the alien labor laws, mining

rights, reciprocity in trade, revision of the agreement respecting naval

vessels in the Great Lakes, a more complete marking of parts of the

boundary, provision for the conveyance of criminals, and for wrecking and

salvage.

Much progress had been made by the Commission toward the adjustment of many

of these questions, when it became apparent that an irreconcilable

difference of views was entertained respecting the delimitation of the

Alaskan, boundary. In the failure of an agreement as to the meaning of

Articles III and IV of the treaty of 1825 between Russia and Great Britain,

which defined the boundary between Alaska and Canada, the American

Commissioners proposed that the subject of the boundary be laid aside, and

that the remaining questions of difference be proceeded with, some of which

were so far advanced as to assure the probability of a settlement. This

being declined by the British Commissioners, an adjournment was taken until

the boundary should be adjusted by the two Governments. The subject has

been receiving the careful attention which its importance demands, with the

result that a modus vivendi for provisional demarcations in the region

about the head of Lynn Canal has, been agreed upon; and it is hoped that

the negotiations now in progress between the two Governments will end in an

agreement for the establishment and delimitation of a permanent boundary.

Apart from these questions growing out of our relationship with our

northern neighbor, the most friendly disposition and ready agreement have

marked the discussion of numerous matters arising in the vast and intimate

intercourse of the United States with Great Britain.

This Government has maintained an attitude of neutrality in the unfortunate

contest between Great Britain and the Boer States of Africa. We have

remained faithful to the precept of avoiding entangling alliances as to

affairs not of our direct concern. Had circumstances suggested that the

parties to the quarrel would have welcomed any kindly expression of the

hope of the American people that war might be averted, good offices would

have been gladly tendered. The United States representative at Pretoria was

early instructed to see that all neutral American interests be respected by

the combatants. This has been an easy task in view of the positive

declarations of both British and Boer authorities that the personal and

property rights of our citizens should be observed.

Upon the withdrawal of the British agent from Pretoria the United States

consul was authorized, upon the request of the British Government and with

the assent of the South African and Orange Free State Governments, to

exercise the customary good offices of a neutral for the care of British

interests. In the discharge of this function, I am happy to say that

abundant opportunity has been afforded to show the impartiality of this

Government toward both the combatants.

For the fourth time in the present decade, question has arisen with the

Government of Italy in regard to the lynching of Italian subjects. The

latest of these deplorable events occurred at Tallulah, Louisiana, whereby

five unfortunates of Italian origin were taken from jail and hanged.

The authorities of the State and a representative of the Italian Embassy

having separately investigated the occurrence, with discrepant results,

particularly as to the alleged citizenship of the victims, and it not

appearing that the State had been able to discover and punish the violators

of the law, an independent investigation has been set on foot, through the

agency of the Department of State, and is still in progress. The result

will enable the Executive to treat the question with the Government of

Italy in a spirit of fairness and justice. A satisfactory solution will

doubtless be reached.

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