inty as to whether our well-nigh
extinguished German trade in meat products can revive under its new
burdens. Much will depend upon regulations not yet promulgated, which we
confidently hope will be free from the discriminations which attended
the enforcement of the old statutes.

The remaining link in the new lines of direct telegraphic communication
between the United States and the German Empire has recently been
completed, affording a gratifying occasion for exchange of friendly
congratulations with the German Emperor.

Our friendly relations with Great Britain continue. The war in
Southern Africa introduced important questions. A condition unusual
in international wars was presented in that while one belligerent had
control of the seas, the other had no ports, shipping, or direct trade,
but was only accessible through the territory of a neutral. Vexatious
questions arose through Great Britain's action in respect to neutral
cargoes, not contraband in their own nature, shipped to Portuguese South
Africa, on the score of probable or suspected ultimate destination to
the Boer States.

Such consignments in British ships, by which alone direct trade is kept
up between our ports and Southern Africa, were seized in application of
a municipal law prohibiting British vessels from trading with the enemy
without regard to any contraband character of the goods, while cargoes
shipped to Delagoa Bay in neutral bottoms were arrested on the ground
of alleged destination to enemy's country. Appropriate representations
on our part resulted in the British Government agreeing to purchase
outright all such goods shown to be the actual property of American
citizens, thus closing the incident to the satisfaction of the
immediately interested parties, although, unfortunately, without a broad
settlement of the question of a neutral's right to send goods not
contraband _per se_ to a neutral port adjacent to a belligerent
area.

The work of marking certain provisional boundary points, for convenience
of administration, around the head of Lynn Canal, in accordance with the
temporary arrangement of October, 1899, was completed by a joint survey
in July last. The _modus vivendi_ has so far worked without
friction, and the Dominion Government has provided rules and regulations
for securing to our citizens the benefit of the reciprocal stipulation
that the citizens or subjects of either power found by that arrangement
within the temporary jur