visional Government, has since been confirmed in the Presidency by
the Assembly, and diplomatic recognition duly followed.

The killing of General Barrundia on board the Pacific mail steamer
_Acapulco_, while anchored in transit in the port of San Jose de
Guatemala, demanded careful inquiry. Having failed in a revolutionary
attempt to invade Guatemala from Mexican territory, General Barrundia
took passage at Acapulco for Panama. The consent of the representatives
of the United States was sought to effect his seizure, first at
Champerico, where the steamer touched, and afterwards at San Jose.
The captain of the steamer refused to give up his passenger without a
written order from the United States minister. The latter furnished the
desired letter, stipulating as the condition of his action that General
Barrundia's life should be spared and that he should be tried only for
offenses growing out of his insurrectionary movements. This letter was
produced to the captain of the _Acapulco_ by the military commander at
San Jose as his warrant to take the passenger from the steamer. General
Barrundia resisted capture and was killed. It being evident that the
minister, Mr. Mizner, had exceeded the bounds of his authority in
intervening, in compliance with the demands of the Guatemalan
authorities, to authorize and effect, in violation of precedent, the
seizure on a vessel of the United States of a passenger in transit
charged with political offenses, in order that he might be tried for
such offenses under what was described as martial law. I was constrained
to disavow Mr. Mizner's act and recall him from his post.

The Nicaragua Canal project, under the control of our citizens, is
making most encouraging progress, all the preliminary conditions and
initial operations having been accomplished within the prescribed time.

During the past year negotiations have been renewed for the settlement
of the claims of American citizens against the Government of Chile,
principally growing out of the late war with Peru. The reports from our
minister at Santiago warrant the expectation of an early and
satisfactory adjustment.

Our relations with China, which have for several years occupied so
important a place in our diplomatic history, have called for careful
consideration and have been the subject of much correspondence.

The communications of the Chinese minister have brought into view the
whole subject of our conventional relations with