f this Government attended at
Caracas the centennial celebration of the birth of the illustrious
Bolivar. At the same time the inauguration of the statue of Washington
in the Venezuelan capital testified to the veneration in which his
memory is there held.

Congress at its last session authorized the Executive to propose to
Venezuela a reopening of the awards of the mixed commission of Caracas.
The departure from this country of the Venezuelan minister has delayed
the opening of negotiations for reviving the commission. This Government
holds that until the establishment of a treaty upon this subject the
Venezuelan Government must continue to make the payments provided for
in the convention of 1866.

There is ground for, believing that the dispute growing out of the
unpaid obligations due from Venezuela to France will be satisfactorily
adjusted. The French cabinet has proposed a basis of settlement which
meets my approval, but as it involves a recasting of the annual quotas
of the foreign debt it has been deemed advisable to submit the proposal
to the judgment of the cabinets of Berlin, Copenhagen, The Hague,
London, and Madrid.

At the recent coronation of His Majesty King Kalakaua this Government
was represented both diplomatically and by the formal visit of a vessel
of war.

The question of terminating or modifying the existing reciprocity treaty
with Hawaii is now before Congress. I am convinced that the charges of
abuses and frauds under that treaty have been exaggerated, and I renew
the suggestion of last year's message that the treaty be modified
wherever its provisions have proved onerous to legitimate trade between
the two countries. I am not disposed to favor the entire cessation of
the treaty relations which have fostered good will between the countries
and contributed toward the equality of Hawaii in the family of nations.

In pursuance of the policy declared by this Government of extending our
intercourse with the Eastern nations, legations have during the past
year been established in Persia, Siam, and Korea. It is probable that
permanent missions of those countries will ere long be maintained in the
United States. A special embassy from Siam is now on its way hither.

Treaty relations with Korea were perfected by the exchange at Seoul,
on the 19th of May last, of the ratifications of the lately concluded
convention, and envoys from the King of Tah Chosen have visited this
country and received a cord