ng a ship canal
between the two oceans through the territory of that State have made
progress in their preliminary arrangements. The treaty between the
United States and Great Britain of the 19th of April last, above
referred to, being now in operation, it is to be hoped that the
guaranties which it offers will be sufficient to secure the completion
of the work with all practicable expedition. It is obvious that this
result would be indefinitely postponed if any other than peaceful
measures for the purpose of harmonizing conflicting claims to
territory in that quarter should be adopted. It will consequently be
my endeavor to cause any further negotiations on the part of this
Government which may be requisite for this purpose to be so conducted
as to bring them to a speedy and successful close.

Some unavoidable delay has occurred, arising from distance and the
difficulty of intercourse between this Government and that of
Nicaragua, but as intelligence has just been received of the
appointment of an envoy extraordinary and minister plenipotentiary of
that Government to reside at Washington, whose arrival may soon be
expected, it is hoped that no further impediments will be experienced
in the prompt transaction of business between the two Governments.

Citizens of the United States have undertaken the connection of the
two oceans by means of a railroad across the Isthmus of Tehuantepec,
under grants of the Mexican Government to a citizen of that Republic.
It is understood that a thorough survey of the course of the
communication is in preparation, and there is every reason to expect
that it will be prosecuted with characteristic energy, especially when
that Government shall have consented to such stipulations with the
Government of the United States as may be necessary to impart a
feeling of security to those who may embark their property in the
enterprise. Negotiations are pending for the accomplishment of that
object, and a hope is confidently entertained that when the Government
of Mexico shall become duly sensible of the advantages which that
country can not fail to derive from the work, and learn that the
Government of the United States desires that the right of sovereignty
of Mexico in the Isthmus shall remain unimpaired, the stipulations
referred to will be agreed to with alacrity.

By the last advices from Mexico it would appear, however, that that
Government entertains strong objections to some of the stipulat