The situation in China which a few months ago was so threatening as to call
for the dispatch of a large additional force has, been much composed. The
Nationalist Government has established itself over the country and
promulgated a new organic law announcing a program intended to promote the
political and economic welfare of the people. We have recognized this
Government, encouraged its progress, and have negotiated a treaty
restoring to China complete tariff autonomy and guaranteeing our citizens
against discriminations. Our trade in that quarter is increasing and our
forces are being reduced.