For the real culprits, the evil counselors who have misled the Imperial

judgment and diverted the sovereign authority to their own guilty ends,

full expiation becomes imperative within the rational limits of retributive

Justice. Regarding this as the initial condition of an acceptable

settlement between China and the powers, I said in my message of October 18

to the Chinese Emperor: I trust that negotiations may begin so soon as we

and the other offended Governments shall be effectively satisfied of Your

Majesty's ability and power to treat with just sternness the principal

offenders, who are doubly culpable, not alone toward the foreigners, but

toward Your Majesty, under whose rule the purpose of China to dwell in

concord with the world had hitherto found expression in the welcome and

protection assured to strangers. Taking, as a point of departure, the

Imperial edict appointing Earl Li Hung Chang and Prince Ching

plenipotentiaries to arrange a settlement, and the edict of September 25,

whereby certain high officials were designated for punishment, this

Government has moved, in concert with the other powers, toward the opening

of negotiations, which Mr. Conger, assisted by Mr. Rockhill, has been

authorized to conduct on behalf of the United States.

General bases of negotiation formulated by the Government of the French

Republic have been accepted with certain reservations as to details, made

necessary by our own circumstances, but, like similar reservations by other

powers, open to discussion in the progress of the negotiations. The

disposition of the Emperor's Government to admit liability for wrongs done

to foreign Governments and their nationals, and to act upon such additional

designation of the guilty persons as the foreign ministers at Peking may be

in a position to make, gives hope of a complete settlement of all questions

involved, assuring foreign rights of residence and intercourse on terms of

equality for all the world.

I regard as one of the essential factors of a durable adjustment the

securement of adequate guarantees for liberty of faith, since insecurity of

those natives who may embrace alien creeds is a scarcely less effectual

assault upon the rights of foreign worship and teaching than would be the

direct invasion thereof.

The matter of indemnity for our wronged citizens is a question of grave

concern. Measured in money alone, a sufficient reparation may prove to be

beyond the ability of China to meet. All the powers concur in emphatic

disclaimers of any purpose of aggrandizement through the dismemberment of

the Empire. I am disposed to think that due compensation may be made in

part by increased guarantees of security for foreign rights and immunities,

and, most important of all, by the opening of China to the equal commerce

of all the world. These views have been and will be earnestly advocated by

our representatives.

The Government of Russia has put forward a suggestion, that in the event of

protracted divergence of views in regard to indemnities the matter may be

relegated to the Court of Arbitration at The Hague. I favorably incline to

this, believing that high tribunal could not fail to reach a solution no

less conducive to the stability and enlarged prosperity of China itself

than immediately beneficial to the powers.

Ratifications of a treaty of extradition with the Argentine Republic were

exchanged on June 2 last.

While the Austro-Hungarian Government has in the many cases that have been

reported of the arrest of our naturalized citizens for alleged evasion of

military service faithfully observed the provisions of the treaty and

released such persons from military obligations, it has in some instances

expelled those whose presence in the community of their origin was asserted

to have a pernicious influence. Representations have been made against this

course whenever its adoption has appeared unduly onerous.

We have been urgently solicited by Belgium to ratify the International

Convention of June, 1899, amendatory of the previous Convention of 1890 in

respect to the regulation of the liquor trade in Africa. Compliance was

necessarily withheld, in the absence of the advice and consent of the

Senate thereto. The principle involved has the cordial sympathy of this

Government, which in the reversionary negotiations advocated more drastic

measures, and I would gladly see its extension, by international agreement,

to the restriction of the liquor traffic with all uncivilized peoples,

especially in the Western Pacific.

A conference will be held at Brussels December 11, 1900, under the

Convention for the protection of industrial property, concluded at Paris

March 20, 1883, to which delegates from this country have been appointed.

Any lessening of the difficulties that our inventors encounter in obtaining

patents abroad for their inventions and that our farmers, manufacturers,

and merchants may have in the protection of their trade-marks is worthy of

careful consideration, and your attention will be called to the results of

the conference at the proper time.

In the interest of expanding trade between this country and South America,

efforts have been made during the past year to conclude conventions with

the southern republics for the enlargement of postal facilities. Two such

agreements, signed with Bolivia on April 24, of which that establishing the

money-order system is undergoing certain changes suggested by the

Post-Office Department, have not yet been ratified by this Government. A

treaty of extradition with that country, signed on the same day, is before

the Senate.

A boundary dispute between Brazil and Bolivia over the territory of Acre is

in a fair way of friendly adjustment, a protocol signed in December, 1899,

having agreed on a definite frontier and provided for its demarcation by a

joint commission.

Conditions in Brazil have weighed heavily on our export trade to that

country in marked contrast to the favorable conditions upon which Brazilian

products are admitted into our markets. Urgent representations have been

made to that Government on the subject and some amelioration has been

effected. We rely upon the reciprocal justice and good will of that

Government to assure to us a further improvement in our commercial

relations.

The Convention signed May 24, 1897, for the final settlement of claims left

in abeyance upon the dissolution of the Commission of 1893, was at length

ratified by the Chilean Congress and the supplemental Commission has been

organized.

It remains for the Congress to appropriate for the necessary expenses of

the Commission.

The insurrectionary movement which disturbed Colombia in the latter part of

1899 has been practically suppressed, although guerrillas still operate in

some departments. The executive power of that Republic changed hands in

August last by the act of Vice-President Marroquin in assuming the reins of

government during the absence of President San Clemente from the capital.

The change met with no serious opposition, and, following the precedents in

such cases, the United States minister entered into relations with the new

defacto Government on September 17.

It is gratifying to announce that the residual questions between Costa Rica

and Nicaragua growing out of the Award of President Cleveland in 1888 have

been adjusted through the choice of an American engineer, General E. P.

Alexander, as umpire to run the disputed line. His task has been

accomplished to the satisfaction of both contestants.

A revolution in the Dominican Republic toward the close of last year

resulted in the installation of President Jimenez, whose Government was

formally recognized in January. Since then final payment has been made of

the American claim in regard to the Ozama bridge.

The year of the exposition has been fruitful in occasions for displaying

the good will that exists between this country and France. This great

competition brought together from every nation the best in natural

productions, industry, science, and the arts, submitted in generous rivalry

to a judgment made all the more searching because of that rivalry. The

extraordinary increase of exportations from this country during the past

three years and the activity with which our inventions and wares had

invaded new markets caused much interest to center upon the American

exhibit, and every encouragement was offered in the way of space and

facilities to permit of its being comprehensive as a whole and complete in

every part.

It was, however, not an easy task to assemble exhibits that could fitly

illustrate our diversified resources and manufactures. Singularly enough,

our national prosperity lessened the incentive to exhibit. The dealer in

raw materials knew that the user must come to him; the great factories were

contented with the phenomenal demand for their output, not alone at home,

but also abroad, where merit had already won a profitable trade.

Appeals had to be made to the patriotism of exhibitors to induce them to

incur outlays promising no immediate return. This was especially the case

where it became needful to complete an industrial sequence or illustrate a

class of processes. One manufacturer after another had to be visited and

importuned, and at times, after a promise to exhibit in a particular

section had been obtained, it would be withdrawn, owing to pressure of

trade orders, and a new quest would have to be made.

The installation of exhibits, too, encountered many obstacles and involved

unexpected cost. The exposition was far from ready at the date fixed for

its opening. The French transportation lines were congested with offered

freight. Belated goods had to be hastily installed in unfinished quarters

with whatever labor could be obtained in the prevailing confusion. Nor was

the task of the Commission lightened by the fact that, owing to the scheme

of classification adopted, it was impossible to have the entire exhibit of

any one country in the same building or more than one group of exhibits in

the same part of any building. Our installations were scattered on both

sides of the Seine and in widely remote suburbs of Paris, so that

additional assistants were needed for the work of supervision and

arrangement.

Despite all these drawbacks the contribution of the United States was not

only the largest foreign display, but was among the earliest in place and

the most orderly in arrangement. Our exhibits were shown in one hundred and

one out of one hundred and twenty-one classes, and more completely covered

the entire classification than those of any other nation. In total number

they ranked next after those of France, and the attractive form in which

they were presented secured general attention.

A criterion of the extent and success of our participation and of the

thoroughness with which our exhibits were organized is seen in the awards

granted to American exhibitors by the international jury, namely, grand

prizes, 240; gold medals, 597; silver medals, 776; bronze medals, 541, and

honorable mentions, 322--2,476 in all, being the greatest total number

given to the exhibit of any exhibiting nation, as well as the largest

number in each grade. This significant recognition of merit in competition

with the chosen exhibits of all other nations and at the hands of juries

almost wholly made up of representatives of France and other competing

countries is not only most gratifying, but is especially valuable, since it

sets us to the front in international questions of supply and demand, while

the large proportion of awards in the classes of art and artistic

manufactures afforded unexpected proof of the stimulation of national

culture by the prosperity that flows from natural productiveness joined to

industrial excellence.

Apart from the exposition several occasions for showing international good

will occurred. The inauguration in Paris of the Lafayette Monument,

presented by the school children of the United States, and the designing of

a commemorative coin by our Mint and the presentation of the first piece

struck to the President of the Republic, were marked by appropriate

ceremonies, and the Fourth of July was especially observed in the French

capital.

Good will prevails in our relations with the German Empire. An amicable

adjustment of the long-pending question of the admission of our

life-insurance companies to do business in Prussia has been reached. One of

the principal companies has already been readmitted and the way is opened

for the others to share the privilege.

The settlement of the Samoan problem, to which I adverted in my last

message, has accomplished good results. Peace and contentment prevail in

the islands, especially in Tutuila, where a convenient administration that

has won the confidence and esteem of the kindly disposed natives has been

organized under the direction of the commander of the United States naval

station at Pago-Pago.

An Imperial meat inspection law has been enacted for Germany. While it may

simplify the inspections, it prohibits certain products heretofore

admitted. There is still great uncertainty as to whether our well-nigh

extinguished German trade in meat products can revive tinder its new

burdens. Much will depend upon regulations not yet promulgated, which we

confidently hope will be free from the discriminations which attended the

enforcement of the old statutes.

The remaining link in the new lines of direct telegraphic communication

between the United States and the German Empire has recently been

completed, affording a gratifying occasion for exchange of friendly

congratulations with the German Emperor.

Our friendly relations with Great Britain continue. The war in Southern

Africa introduced important questions. A condition unusual in international

wars was presented in that while one belligerent had control of the seas,

the other had no ports, shipping, or direct trade, but was only accessible

through the territory of a neutral. Vexatious questions arose through Great

Britain's action in respect to neutral cargoes, not contraband in their own

nature, shipped to Portuguese South Africa, on the score of probable or

suspected ultimate destination to the Boer States.

Such consignments in British ships, by which alone direct trade is kept up

between our ports and Southern Africa, were seized in application of a

municipal law prohibiting British vessels from trading with the enemy

without regard to any contraband character of the goods, while cargoes

shipped to Delagoa Bay in neutral bottoms were arrested on the ground of

alleged destination to enemy's country. Appropriate representations on our

part resulted in the British Government agreeing to purchase outright all

such goods shown to be the actual property of American citizens, thus

closing the incident to the satisfaction of the immediately interested

parties, although, unfortunately, without a broad settlement of the

question of a neutral's right to send goods not contraband per se to a

neutral port adjacent to a belligerent area.

The work of marking certain provisional boundary points, for convenience of

administration, around the head of Lynn Canal, in accordance with the

temporary arrangement of October, 1899, Was completed by a joint survey in

July last. The modus vivendi has so far worked without friction, and the

Dominion Government has provided rules and regulations for securing to our

citizens the benefit of the reciprocal stipulation that the citizens or

subjects of either power found by that arrangement within the temporary

jurisdiction of the other shall suffer no diminution of the rights and

privileges they have hitherto enjoyed. But however necessary such an

expedient may have been to tide over the grave emergencies of the

situation, it is at best but an unsatisfactory makeshift, which should not

be suffered to delay the speedy and complete establishment of the frontier

line to which we are entitled under the Russo-American treaty for the

cession of Alaska.

In this relation I may refer again to the need of definitely marking the

Alaskan boundary where it follows the one hundred and forty-first meridian.

A convention to that end has been before the Senate for some two years, but

as no action has been taken I contemplate negotiating a new convention for

a joint determination of the meridian by telegraphic observations. These,

it is believed, will give more accurate and unquestionable results than the

sidereal methods heretofore independently followed, which, as is known,

proved discrepant at several points on the line, although not varying at

any place more than 700 feet.

The pending claim of R. H. May against the Guatemalan Government has been

settled by arbitration, Mr. George F. B. Jenner, British minister at

Guatemala, who was chosen as sole arbitrator, having awarded $143,750.73 in

gold to the claimant.

Various American claims against Haiti have been or are being advanced to

the resort of arbitration.

As the result of negotiations with the Government of Honduras in regard to

the indemnity demanded for the murder of Frank H. Pears in Honduras, that

Government has paid $10,000 in settlement of the claim of the heirs.

The assassination of King Humbert called forth sincere expressions of

sorrow from this Government and people, and occasion was fitly taken to

testify to the Italian nation the high regard here felt for the memory of

the lamented ruler.

In my last message I referred at considerable length to the lynching of

five Italians at Tallulah. Notwithstanding the efforts of the Federal

Government, the production of evidence tending to inculpate the authors of

this grievous offense against our civilization, and the repeated inquests

set on foot by the authorities of the State of Louisiana, no punishments

have followed. Successive grand juries have failed to indict. The

representations of the Italian Government in the face of this miscarriage

have been most temperate and just.

Setting the principle at issue high above all consideration of merely

pecuniary indemnification, such as this Government made in the three

previous cases, Italy has solemnly invoked the pledges of existing treaty

and asked that the justice to which she is entitled shall be meted in

regard to her unfortunate countrymen in our territory with the same full

measure she herself would give to any American were his reciprocal treaty

rights contemned.

I renew the urgent recommendations I made last year that the Congress

appropriately confer upon the Federal courts jurisdiction in this class of

international cases where the ultimate responsibility of the Federal

Government may be involved, and I invite action upon the bills to

accomplish this which were introduced in the Sen. ate and House. It is

incumbent upon us to remedy the statutory omission which has led, and may

again lead, to such untoward results. I have pointed out the necessity and

the precedent for legislation of this character. Its enactment is a simple

measure of previsory justice toward the nations with which we as a

sovereign equal make treaties requiring reciprocal observance.

While the Italian Government naturally regards such action as the primary

and, indeed, the most essential element in the disposal of the Tallulah

incident, I advise that, in accordance with precedent, and in view of the

improbability of that particular case being reached by the bill now

pending, Congress make gracious provision for indemnity to the Italian

sufferers in the same form and proportion as heretofore.

In my inaugural address I referred to the general subject of lynching in

these words: Lynching must not be tolerated in a great and civilized

country like the United States; courts, not mobs, must execute the

penalties of the law. The preservation of public order, the right of

discussion, the integrity of courts, and the orderly administration of

justice must continue forever the rock of safety upon which our Government

securely rests. This I most urgently reiterate and again invite the

attention of my countrymen to this reproach upon our civilization.

The closing year has witnessed a decided strengthening of Japan's relations

to other states. The development of her independent judicial and

administrative functions under the treaties which took effect July 17,

1899, has proceeded without international friction, showing the competence

of the Japanese to hold a foremost place among modern peoples.

In the treatment of the difficult Chinese problems Japan has acted in

harmonious concert with the other powers, and her generous cooperation

materially aided in the joint relief of the beleaguered legations in Peking

and in bringing about an understanding preliminary to a settlement of the

issues between the powers and China. Japan's declarations in favor of the

integrity of the Chinese Empire and the conservation of open world trade

therewith have been frank and positive. As a factor for promoting the

general interests of peace, order, and fair commerce in the Far East the

influence of Japan can hardly be overestimated.

The valuable aid and kindly courtesies extended by the Japanese Government

and naval officers to the battle ship Oregon are gratefully appreciated.

Complaint was made last summer of the discriminatory enforcement of a

bubonic quarantine against Japanese on the Pacific coast and of

interference with their travel in California and Colorado under the health

laws of those States. The latter restrictions have been adjudged by a

Federal court to be unconstitutional. No recurrence of either cause of

complaint is apprehended.

No noteworthy incident has occurred in our relations with our important

southern neighbor. Commercial intercourse with Mexico continues to thrive,

and the two Governments neglect no opportunity to foster their mutual

interests in all practicable ways.

Pursuant to the declaration of the Supreme Court that the awards of the

late joint Commission in the La Abra and Weil claims were obtained through

fraud, the sum awarded in the first case, $403,030.08, has been returned to

Mexico, and the amount of the Weil award will be returned in like manner.

A Convention indefinitely extending the time for the labors of the United

States and Mexican International (Water) Boundary Commission has been

signed.

It is with satisfaction that I am able to announce the formal notification

at The Hague, on September 4, of the deposit of ratifications of the

Convention for the Pacific Settlement of International Disputes by sixteen

powers, namely, the United States, Austria, Belgium, Denmark, England,

France, Germany, Italy, Persia, Portugal, Roumania, Russia, Siam, Spain,

Sweden and Norway, and the Netherlands. Japan also has since ratified the

Convention.

The Administrative Council of the Permanent Court of Arbitration has been

organized and has adopted rules of order and a constitution for the

International Arbitration Bureau. In accordance with Article XXIII of the

Convention providing for the appointment by each signatory power of persons

of known competency in questions of international law as arbitrators, I

have appointed as members of this Court, Hon. Benjamin Harrison, of

Indiana, ex-President of the United States; Hon. Melville W. Fuller, of

Illinois, Chief justice of the United States; Hon. John W. Griggs, of New

Jersey, Attorney General of the United States; and Hon. George Gray, of

Delaware, a judge of the circuit court of the United States.

As an incident of the brief revolution in the Mosquito district of

Nicaragua early in 1899 the insurgents forcibly collected from American

merchants duties upon imports. On the restoration of order the Nicaraguan

authorities demanded a second payment of such duties on the ground that

they were due to the titular Government and that their diversion had aided

the revolt.

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