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leaves these two governments withont a shadow upon the friendly relations which it is my sincere hope may forever remain equally unclouded.

The report of the agent of the United States appointed to attend the Geneva tribunal, accompanied by the protocols of the proceedings of the arbitrators, the arguments of the counsel of both governments, the arrard of the tribunal, and the opinions given by the several arbitrators, is transmitted herewith.

I have caused to be communicated, to the heads of the three friendly povers who complied with the joint request made to them under the treaty, the thanks, of this Government for the appointment of arbitrators made by them respectively, and also my thanks to the eminent personages named by them, and my appreciation of the dignity, patience, im. partiality, and great ability with which they discharged their arduous and high functions.

Her Majesty's government has communicated to me the appreciation by IIer Majesty of the ability and indefatigable industry displayed by Mr. Adams, the arbitrator named on the part of this Government, dnr. ing the protracted inquiries and discussions of the tribunal. I cor. dially unite with Her Majesty in this appreciation.

It is due to the agent of the United States before the tribunal to re. cord my higli appreciation of the marked ability, unwearied patience, and the prudence and discretion with which he has conducted the very responsible and delicate duties committed to him, as it is also due to the learned and eminent counsel who attended the tribunal on the part of this Government, to express my sense of the talents and wisdom which they brought to bear in the attainment of the result so happily reached.

It will be the province of Congress to provide for the distribution, among those who may be entitled to it, of their respective shares of the money to be paid. Although the sum awarded is not payable until a year from the date of the award, it is deemed advisable that no time be lost in making a proper examination of the several cases in which indemnitication may be due. I consequently recommend the creation of a board of commissioners for the purpose.

By the thirty-fourth article of the treaty of Washington the respective claims of the United States and of Great Britain, in their construe. tion of the treaty of the 15th of June, 1816, defining the boundary-line between their respective territories, were submitted to the arbitration and award of Ilis Majesty the Emperor of Germany, to decide which of those claims is most in accordance with the true interpretation of the treaty of 18 10.

His Majesty the Emperor of Germany, having been pleased to undertake the arbitration, has the carnest thanks of this Gorernment and of the people of the United States for the labor, pains, and care which he has devoted to the consideration of this long-pending difference. I hare cause an expression of my thanks to be communicated to His

Vajesty: Mr. Bancroft, the representative of this Government at Ber. lin, conducted the case, and prepared the statement on the part of the United States, with the ability that his past services justified the public in expecting at his hands. As a member of the Cabinet at the date of the treaty which has given rise to the discussion between the two Gorernments, as the minister to Great Britain when the construction 110W pronounced unfounded was first advanced, and as the agent and representative of the Government to present the case and to receive the award, he has been associated with the question in all of its phases, and in every stage has manifested a patriotic zeal and earnestness in maintenance of the claim of the United States. He is entitled to much credit for the success which has attended the submission.

After a patient investigation of the case and of the statements of each party, His Majesty the Emperor, on the 21st day of October last, signed his award in writing, decreeing that the claim of the Government of the United States, that the boundary-line between the territories of Her Britannic Majesty and the United States should be drawn through the Harro Channel, is most in accordance with the true interpretation of the treaty concluded on the 15th of June, 1846, between the GovernInents of Her Britannic Majesty and of the United States.

Copies of the "case" presented on behalf of each government, and of the "statement in reply” of each, and a translation of the award, are transmitted herewith.

This award confirms the United States in their claim to the important archipelago of islands lying between the continent and Vancouver's Island, which for more than twenty-six years (ever since the ratification of the treaty) Great Britain has contested, and leaves us, for the first time in the history of the United States as a nation, without a question of disputed boundary between our territory and the possessions of Great Britain on this continent.

It is my grateful duty to acknowledge the prompt, spontaneous action of Her Majesty's government in giving effect to the award. In anticipation of any request from this Government, and before the reception in the United States of the award signed by the Emperor, Her Majesty had given instructions for the removal of her troops which had been stationed there, and for the cessation of all exercise or claim of jurisdiction, so as to leave the United States in the exclusive possession of the lately disputed territory. I am gratified to be able to announce that the orders for the removal of the troops have been executed, and that the military joint occupation of San Juan has ceased. The islands are now in the exclusive possession of the United States.

It now becomes necessary to complete the survey and determination of that portion of the boundary-line (through the Haro Channel) upon which the commission which determined the remaining part of the line were unable to agree. I recommend the appointment of a commission to act jointly with one which may be named by Her Majesty for that purpose.

Experience of the difticulties attending the determination of our ad. mitted line of boundary, after the occupation of the territory, and its settlement by those owing allegiance to the respective governments, points to the importance of establishing, by natural objects or other monuments, the actual line between the territory acquired by purchase from Russia, and the adjoining possessions of Her Britannic Majesty. The region is now so sparsely occupied that no conflicting interests of individuals or of jurisdiction are likely to interfere to the delay or embarrassment of the actual location of the line. If deferred until population shall enter and occupy the territory, some trivial contest of neighbors may again array the two governments in antagonism. I therefore recommend the appointment of a commission, to act jointly with one tlrat may be appointed on the part of Great Britain, to determine the line between our territory of Alaska and the conterminous possessions of Great Britain.

In my last annual message I recommended the legislation necessary on the part of the United States to bring into operation the articles of the treaty of Washington, of May 8, 1871, relating to the fisheries, and to other matters touching the relations of the United States toward the British North American possessions, to become operative so soon as the proper legislation should be had on the part of Great Britain and its possessions.

That legislation on the part of Great Britain and its possessions had not then been had, and during the session of Congress a question was raised which for the time raised a doubt whether any action by Congress in the direction indicated would become important. This question has since been disposed of, and I have received notice that the Imperial Parliament and the legislatures of the provincial governments have passed laws to carry the provisions of the treaty on the matters referred to into operation. I therefore recommend your early adoption of the legislation in the samo direction necessary on the part of this Gorernment.

The joint commission for determining the boundary-line between the United States and the British possessions, between the Lake of the Woods and the Rocky Mountains, has organized and entered upon its work. It is desirable that the force be increased in order that the completion of the survey and determination of the line may be the sooner attained. To this end I recommend that a sufficient appropriation be made.

With France, our earliest ally; Russia, the constant and steady friend of the United States; Germany, with whose government and people we have so many causes of friendship and so many common sympathies, and the other powers of Europe, our relations are maintained on the most friendly terms.

Since my last annual message the exchange has been made of the ratifications of a treaty with the Austro-Hungarian empire, relating to naturalization; also of a treaty with the German empire respecting consuls and trade-marks; also of a treaty with Sweden and Norway relating to naturalization; all of which treaties have been duly proclaimed.

Congress, at its last session, having made an appropriation to defray the expense of commissioners on the part of the United States to the International Statistical Congress at St. Petersburg, the persons appointed in that character proceeded to their destination and attended the sessions of the congress. Their report shall in due season be laid before you. This congress meets at intervals of about three years, and has held its sessions in several of the countries of Europe. I submit to your consideration the propriety of extending an invitation to the congress to hold its next meeting in the United States. The Centennial celebration to be held in 1876 would afford an appropriate occasion for such meeting.

Preparations are making for the International Exposition to be held during the next year in Vienna, on a scale of very great magnitude. The tendency of these expositions is in the direction of advanced civilization, and of the elevation of industry and of labor, and of the increase of human happiness, as well as of greater intercourse and good will between nations. As this exposition is to be the first which will have been held in Eastern Europe, it is believed that American inventors and manufacturers will be ready to avail themselves of the opportunity for the presentation of their productions if encouraged by proper aid and protection.

At the last session of Congress, authority was given for the appointment of one or more agents to represent this Government at the exposition. The authority thus given has been exercised; but, in the ab. sence of any appropriation, there is danger that the important benefits which the occasion offers will, in a large degree, be lost to citizens of

a the United States. I commend the subject strongly to your consideration, and recommend that an adequate appropriation be made for the purpose.

To further aid American exhibitors at the Vienna Exposition I would recommend, in addition to an appropriation of money, that the Secre. tary of the Navy be authorized to fit up two naval vessels to transport between our Atlantic cities and Trieste, or the most convenient port to Vienna, and back, their articles for exhibition.

Since your last session the President of the Mexican Republic, distinguished by his high character, and by his services to his country, has died. His temporary successor has now been elected with great unanimity by the people, a proof of confidence on their part in his patriotism and wisdom, which it is believed will be confirmed by the results of his administration. It is particularly desirable that nothing should be left

undone by the government of either republic to strengthen their relations as neighbors and friends.

It is much to be regretted that many lawless acts continue to disturb the quiet of the settlements on the border between our territory and that of Mexico, and that complaints of wrongs to American citizens in various parts of the country are made. The revolutionary condition in which the neighboring republic has so long been involved, bas in some degree contributed to this disturbance. It is to be hoped that with a more settled rule of order through the republic, which may be expected from the present government, the acts of which just complaint is made will cease.

The proceedings of the commission under the convention with Mexico of the 4th of July, 1868, of the subject of claims, have unfortunately been checked by an obstacle, for the removal of which measures have been taken by the two governments which it is believed will prove successful.

The cominissioners appointed, pursuant to the joint resolution of Con. gress of the 7th of May last, to inquire into depredations on the Texan frontier, have diligently made investigations in that quarter. Their report upon the subject will be communicated to you. Their researches were necessarily incomplete, partly on account of the limited appropriation made by Congress. Mexico, on the part of that government, has appointed a similar commission to investigate these outrages. It is not announced officially, but the press of that country states that the fullest investigation is desired, and that the co-operation of all parties concerned is invited to secure that end. I therefore recommend that a special appropriation be made at the earliest day practicable, to enable the commissioners on the part of the United States to return to their labors without delay.

It is with regret that I have again to announce a continuance of the disturbed condition of the island of Cuba. No advance toward the pacification of the discontented part of the population has been made. While the insurrection has gained no advantages and exhibits no more of the elements of power or of the prospects of ultimate success than were exhibited a year ago, Spain, on the other hand, has not succeeded in its repression, and the parties stand apparently in the same relative attitude which they have occupied for a long time past.

This contest has lasted now for more than four years. Were its scene at a distance from our neighborhood, we might be indifferent to its result, although humanity could not be unmoved by many of its incidents wherever they might occur. It is, however, at our door.

I cannot doubt that the continued maintenance of slavery in Cuba is among the strongest inducements to the continuance of this strife. A terrible wrong is the natural cause of a terrible evil. The abolition of slavery, and the introduction of other reforms in the administration of government in Cuba, could not fail to allvance the restoration of peace

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