, of whom the United States
are among the principal. As yet, so far as I am aware, there has been no
violation of our neutrality rights, which, as well as our duties in that
respect, it shall be my endeavor to maintain and observe.

It is with regret I announce that no further payment has been received
from the Government of Venezuela on account of awards in favor of
citizens of the United States. Hopes have been entertained that if that
Republic could escape both foreign and civil war for a few years its
great natural resources would enable it to honor its obligations. Though
it is now understood to be at peace with other countries, a serious
insurrection is reported to be in progress in an important region of
that Republic. This may be taken advantage of as another reason to delay
the payment of the dues of our citizens.

The deplorable strife in Cuba continues without any marked change
in the relative advantages of the contending forces. The insurrection
continues, but Spain has gained no superiority. Six years of strife give
to the insurrection a significance which can not be denied. Its duration
and the tenacity of its adherence, together with the absence of
manifested power of suppression on the part of Spain, can not be
controverted, and may make some positive steps on the part of other
powers a matter of self-necessity. I had confidently hoped at this
time to be able to announce the arrangement of some of the important
questions between this Government and that of Spain, but the
negotiations have been protracted. The unhappy intestine dissensions of
Spain command our profound sympathy, and must be accepted as perhaps
a cause of some delay. An early settlement, in part at least, of the
questions between the Governments is hoped. In the meantime, awaiting
the results of immediately pending negotiations, I defer a further and
fuller communication on the subject of the relations of this country
and Spain.

I have again to call the attention of Congress to the unsatisfactory
condition of the existing laws with reference to expatriation and the
election of nationality. Formerly, amid conflicting opinions and
decisions, it was difficult to exactly determine how far the doctrine of
perpetual allegiance was applicable to citizens of the United States.
Congress by the act of the 27th of July, 1868, asserted the abstract
right of expatriation as a fundamental principle of this Government.
Notwithstanding such assertion