onsibility, the Secretary of
State has informed the British Government that we are ready to receive
any proposals which they may feel disposed to offer having this object
in view, and to consider them in an amicable spirit. A strong opinion
is, however, expressed that the occasional abuse of the flag of
any nation is an evil far less to be deprecated than would be the
establishment of any regulations which might be incompatible with the
freedom of the seas. This Government has yet received no communication
specifying the manner in which the British Government would propose to
carry out their suggestion, and I am inclined to believe that no plan
which can be devised will be free from grave embarrassments. Still,
I shall form no decided opinion on the subject until I shall have
carefully and in the best spirit examined any proposals which they
may think proper to make.

I am truly sorry I can not also inform you that the complications
between Great Britain and the United States arising out of the Clayton
and Bulwer treaty of April, 1850, have been finally adjusted.

At the commencement of your last session I had reason to hope that,
emancipating themselves from further unavailing discussions, the two
Governments would proceed to settle the Central American questions in
a practical manner, alike honorable and satisfactory to both; and this
hope I have not yet abandoned. In my last annual message I stated that
overtures had been made by the British Government for this purpose in
a friendly spirit, which I cordially reciprocated. Their proposal was
to withdraw these questions from direct negotiation between the two
Governments, but to accomplish the same object by a negotiation between
the British Government and each of the Central American Republics whose
territorial interests are immediately involved. The settlement was to be
made in accordance with the general tenor of the interpretation placed
upon the Clayton and Bulwer treaty by the United States, with certain
modifications. As negotiations are still pending upon this basis, it
would not be proper for me now to communicate their present condition.
A final settlement of these questions is greatly to be desired, as this
would wipe out the last remaining subject of dispute between the two
countries.

Our relations with the great Empires of France and Russia, as well as
with all other Governments on the continent of Europe, except that of
Spain, continue to be of the mo