I shall submit, for the consideration of the Senate, a convention for the
adjustment of possessory claims in Washington Territory, arising out of
the treaty of the 15th of June, 1846, between the United States and
Great Britain, and which have been the source of some disquiet among the
citizens of that now rapidly improving part of the country.

A novel and important question, involving the extent of the maritime
jurisdiction of Spain in the waters which surround the island of Cuba,
has been debated without reaching an agreement, and it is proposed, in
an amicable spirit, to refer it to the arbitrament of a friendly power. A
convention for that purpose will be submitted to the Senate.

I have thought it proper, subject to the approval of the Senate, to
concur with the interested commercial powers in an arrangement for the
liquidation of the Scheldt dues upon the principles which have been
heretofore adopted in regard to the imposts upon navigation in the waters
of Denmark.

The long-pending controversy between this government and that of Chile
touching the seizure at Sitana, in Peru, by Chilean officers, of a large
amount in treasure belonging to citizens of the United States has been
brought to a close by the award of His Majesty the King of the Belgians,
to whose arbitration the question was referred by the parties. The subject
was thoroughly and patiently examined by that justly respected magistrate,
and although the sum awarded to the claimants may not have been as
large as they expected there is no reason to distrust the wisdom of His
Majesty's decision. That decision was promptly complied with by Chile when
intelligence in regard to it reached that country.

The joint commission under the act of the last session of carrying
into effect the convention with Peru on the subject of claims has been
organized at Lima, and is engaged in the business intrusted to it.

Difficulties concerning interoceanic transit through Nicaragua are in
course of amicable adjustment.

In conformity with principles set forth in my last annual message, I have
received a representative from the United States of Colombia, and have
accredited a minister to that Republic.

Incidents occurring in the progress of our civil war have forced upon
my attention the uncertain state of international questions touching the
rights of foreigners in this country and of United States citizens abroad.
In regard to some governments these rights are at l