ed, which I deemed incompatible with a satisfactory and rightful
adjustment of the controversy. Waiting for some distinct proposal from
the Government of Great Britain, which has been invited, I can only
repeat the expression of my confidence that, with the strong mutual
disposition which I believe exists to make a just arrangement, this
perplexing question can be settled with a due regard to the well-founded
pretensions and pacific policy of all the parties to it. Events are
frequently occurring on the northeastern frontier of a character to
impress upon all the necessity of a speedy and definitive termination of
the dispute. This consideration, added to the desire common to both to
relieve the liberal and friendly relations so happily existing between
the two countries from all embarrassment, will no doubt have its just
influence upon both.

Our diplomatic intercourse with Portugal has been renewed, and it is
expected that the claims of our citizens, partially paid, will be fully
satisfied as soon as the condition of the Queen's Government will permit
the proper attention to the subject of them. That Government has, I am
happy to inform you, manifested a determination to act upon the liberal
principles which have marked our commercial policy. The happiest effects
upon the future trade between the United States and Portugal are
anticipated from it, and the time is not thought to be remote when a
system of perfect reciprocity will be established.

The installments due under the convention with the King of the Two
Sicilies have been paid with that scrupulous fidelity by which his whole
conduct has been characterized, and the hope is indulged that the
adjustment of the vexed question of our claims will be followed by a
more extended and mutually beneficial intercourse between the two
countries.

The internal contest still continues in Spain. Distinguished as
this struggle has unhappily been by incidents of the most sanguinary
character, the obligations of the late treaty of indemnification with us
have been, nevertheless, faithfully executed by the Spanish Government.

No provision having been made at the last session of Congress
for the ascertainment of the claims to be paid and the apportionment
of the funds under the convention made with Spain, I invite your early
attention to the subject. The public evidences of the debt have,
according to the terms of the convention and in the forms prescribed by
it, been placed