ommerce of the civilized world. It is not doubted
that should the work be undertaken under the protective auspices of
the United States, and upon satisfactory concessions for the right of
way and its security by the Central American Governments, the capital
for its completion would be readily furnished from this country and
Europe, which might, failing such guaranties, prove inaccessible.

Diplomatic relations with Chile have also been strengthened by the
reception of a minister from that country.

The war between Peru, Bolivia, and Chile still continues. The United
States have not deemed it proper to interpose in the matter further
than to convey to all the Governments concerned the assurance that
the friendly offices of the Government of the United States for the
restoration of peace upon an honorable basis will be extended in case
the belligerents shall exhibit a readiness to accept them.

Cordial relations continue with Brazil and the Argentine Republic, and
trade with those countries is improving. A provision for regular and
more frequent mail communication, in our own ships, between the
ports of this country and the nations of South America seems to me
to deserve the attention of Congress as an essential precursor of an
enlargement of our commerce with them and an extension of our carrying
trade.

A recent revolution in Venezuela has been followed by the
establishment of a provisional government. This government has not
yet been formally recognized, and it is deemed desirable to await
the proposed action of the people which is expected to give it the
sanction of constitutional forms.

A naval vessel has been sent to the Samoan Islands to make surveys and
take possession of the privileges ceded to the United States by Samoa
in the harbor of Pago-Pago. A coaling station is to be established
there, which will be convenient and useful to United States vessels.

The subject of opening diplomatic relations with Roumania and
Servia, now become independent sovereignties, is at present under
consideration, and is the subject of diplomatic correspondence.

There is a gratifying increase of trade with nearly all European and
American countries, and it is believed that with judicious action in
regard to its development it can and will be still more enhanced and
that American products and manufactures will find new and expanding
markets. The reports of diplomatic and consular officers upon this
subject, under the syste