response to the resolution of the Senate of the 4th ultimo,
requesting "any reports or correspondence relating to affairs at
Bluefields, in the Mosquito territory," and also information as to
"whether any American citizens have been arrested or the rights of any
American citizens at Bluefields have been interfered with during the
past two years by the Government of Nicaragua," I transmit herewith a
report from the Secretary of State, with accompanying papers.

GROVER CLEVELAND.

EXECUTIVE MANSION, _January 9, 1895_.

_To the Senate and House of Representatives_:

I submit herewith certain dispatches from our minister at Hawaii and the
documents which accompanied the same.

They disclose the fact that the Hawaiian Government desires to lease
to Great Britain one of the uninhabited islands belonging to Hawaii as
a station for a submarine telegraph cable to be laid from Canada to
Australia, with a connection between the island leased and Honolulu.

Both the Hawaiian Government and the representatives of Great Britain
in this negotiation concede that the proposed lease can not be effected
without the consent of the United States, for the reason that in our
reciprocity treaty with the King of Hawaii he agreed that as long as
said treaty remained in force he would not "lease or otherwise dispose
of or create any lien upon any port, harbor, or other territory in his
dominion, or grant any special privilege or right of use therein, to any
other power, state, or government."

At the request of the Hawaiian Government this subject is laid before
the Congress for its determination upon the question of so modifying the
treaty agreement above recited as to permit the proposed lease.

It will be seen that the correspondence which is submitted between the
Hawaiian and British negotiators negatives the existence on the part of
Hawaii of any suspicion of British unfriendliness or the fear of British
aggression.

The attention of the Congress is directed to the following statement
contained in a communication addressed to the Hawaiian Government by the
representatives of Great Britain:

We propose to inform the British Government of your inquiry whether
they would accept the sovereignty of Nicker Island or some other
uninhabited island on condition that no subsidy is required from you.
As we explained, we have not felt at liberty to entertain that question
ourselves, as we were definitely instructed not to ask