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trouble from this cause I invited France and North Germany t an authorized suspension of hostilities in the East, (where the temporarily suspended by act of the commanders,) and to act to for the future protection, in China, of the lives and properties of icans and Europeans.

Since the adjournment of Congress the ratifications of the with Great Britain, for abolishing the mixed courts for the supp of the slave trade, have been exchanged. It is believed that th trade is now confined to the eastern coast of Africa, whence the are taken to Arabian markets.

The ratifications of the naturalization convention between Britain and the United States have also been exchanged dur recess; and thus, a long standing dispute between the two gover has been settled, in accordance with the principles always conten by the United States.

In April last, while engaged in locating a military reservatio Pembina, a corps of engineers discovered that the commonly-r boundary line between the United States and the British posses: that place, is about forty-seven hundred feet south of the true of the forty-ninth parallel, and that the line, when run on what supposed to be the true position of that parallel, would leave the the Hudson's Bay Company, at Pembina, within the territory United States. This information being communicated to the government, I was requested to consent, and did consent, th British occupation of the fort of the Hudson's Bay Company sho tinue for the present. I deem it important, however, that this the boundary line should be definitely fixed by a joint commi the two governments, and I submit herewith estimates of the exp such a commission on the part of the United States, and reco that an appropriation be made for that purpose. The land bo has already been fixed and marked from the summit of the Rocky ains to the Georgian Bay. It should now be, in like manner, from the Lake of the Woods to the summit of the Rocky Moun I regret to say that no conclusion has been reached for the adji of the claims against Great Britain, growing out of the course by that government during the rebellion. The cabinet of Lor far as its views have been expressed, does not appear to be w concede that her Majesty's government was guilty of any neg or did or permitted any act during the war, by which the United has just cause of complaint. Our firm and unalterable convict directly the reverse. I therefore recommend to Congress to a the appointment of a commission to take proof of the amounts, ownership of these several claims, on notice to the representativ Majesty at Washington, and that authority be given for the set of these claims by the United States, so that the Government sh the ownership of the private claims, as well as the responsible

add that, whenever her Majesty's government shall entertain a desire for a full and friendly adjustment of these claims, the United States will enter upon their consideration with an earnest desire for a conclusion consistent with the honor and dignity of both nations.

The course pursued by the Canadian authorities toward the fishermen of the United States during the past season has not been marked by a friendly feeling. By the first article of the convention of 1818, between Great Britain and the United States, it was agreed that the inhabitants of the United States should have forever, in common with British subjects, the right of taking fish in certain waters therein defined. In the waters not included in the limits named in the convention (within three miles of parts of the British coast) it has been the custom for many years to give to intruding fishermen of the United States a reasonable warning of their violation of the technical rights of Great Britain. The imperial government is understood to have delegated the whole or a share of its jurisdiction or control of these in-shore fishing-grounds to the colonial authority known as the Dominion of Canada, and this semi-independent but irresponsible agent has exercised its delegated powers in an unfriendly way. Vessels have been seized without notice or warning, in violation of the custom previously prevailing, and have been taken into the colonial ports, their voyages broken up, and the vessels condemned. There is reason to believe that this unfriendly and vexatious treatment was designed to bear harshly upon the hardy fishermen of the United States, with a view to political effect upon this Government. The statutes of the Dominion of Canada assume a still broader and more untenable jurisdiction over the vessels of the United States. They authorize officers or persons to bring vessels hovering within three marine miles of any of the coasts, bays, creeks, or harbors of Canada into port, to search the cargo, to examine the master on oath touching the cargo and voyage, and to inflict upon him a heavy pecuniary penalty if true answers are not given; and if such a vessel is found "preparing to fish" within three marine miles of any of such coasts, bays, creeks, or harbors without a license, or after the expiration of the period named in the last license granted to it, they provide that the vessel, with her tackle, &c., shall be forfeited. It is not known that any condemnations have been made under this statute. Should the authorities of Canada attempt to enforce it, it will become my duty to take such steps as may be necessary to protect the rights of the citizens of the United States.

It has been claimed by her Majesty's officers that the fishing vessels of the United States have no right to enter the open ports of the British possessions in North America, except for the purposes of shelter and repairing damages, of purchasing wood, and obtaining water; that they have no right to enter at the British custom-houses or to trade there except in the purchase of wood and water; and that they must depart

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within twenty-four hours after notice to leave. It is not know any seizure of a fishing vessel, carrying the flag of the United Stat been made under this claim. So far as the claim is founded alleged construction of the convention of 1818, it cannot be acqu in by the United States. It is hoped that it will not be insisted her Majesty's government.

During the conferences which preceded the negotiation of th vention of 1818, the British commissioners proposed to expres clude the fishermen of the United States from "the privil carrying on trade with any of his Britannic Majesty's subjects re within the limits assigned for their use;" and also that it should "lawful for the vessels of the United States, engaged in said f to have on board any goods, wares, or merchandise whatever, such as may be necessary for the prosecution of their voyages from the said fishing-grounds. And any vessel of the United which shall contravene this regulation may be seized, condemne confiscated with her cargo."

This proposition, which is identical with the construction no upon the language of the convention, was emphatically rejected American commissioners, and thereupon was abandoned by the plenipotentiaries, and Article I, as it stands in the convention, wa stituted.

If, however, it be said that this claim is founded on provin colonial statutes, and not upon the convention, this Government but regard them as unfriendly, and in contravention of the s not of the letter, of the treaty, for the faithful execution of whi imperial government is alone responsible.

Anticipating that an attempt may possibly be made by the Ca authorities in the coming season to repeat their unneighborly acts our fishermen, I recommend you to confer upon the Executive the to suspend, by proclamation, the operation of the laws authorizi transit of goods, wares, and merchandise in bond across the te of the United States to Canada; and further, should such an e measure become necessary, to suspend the operation of any laws w the vessels of the Dominion of Canada are permitted to enter the of the United States.

A like unfriendly disposition has been manifested on the part ada in the maintenance of a claim of right to exclude the citi the United States from the navigation of the St. Lawrence. Thi constitutes a natural outlet to the ocean for eight States with an gate population of about seventeen million six hundred thousand itants, and with an aggregate tonnage of six hundred and six thousand three hundred and sixty-seven tons upon the waters discharge into it. The foreign commerce of our ports on these

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ocean, the monopoly of the direct commerce of the lake ports with the Atlantic would be in foreign hands; their vessels on transatlantic voyages having an access to our lake ports which would be denied to American vessels on similar voyages. To state such a proposition is to refute its justice.

During the administration of Mr. John Quincy Adams, Mr. Clay unanswerably demonstrated the natural right of the citizens of the United States to the navigation of this river, claiming that the act of the congress of Vienna, in opening the Rhine and other rivers to all nations, showed the judgment of European jurists and statesmen that the inhabitants of a country through which a navigable river passes have a natural right to enjoy the navigation of that river to and into the sea, even though passing through the territories of another power. This right does not exclude the co-equal right of the sovereign possessing the territory through which the river debouches into the sea to make such regulations relative to the police of the navigation as may be reasonably necessary; but those regulations should be framed in a liberal spirit of comity, and should not impose needless burdens upon the commerce which has the right of transit, It has been found in practice more advantageous to arrange these regulations by mutual agreement. The United States are ready to make any reasonable arrangement, as to the police of the St. Lawrence, which may be suggested by Great Britain.

If the claim made by Mr. Clay was just when the population of States bordering on the shores of the lakes was only three million four hundred thousand, it now derives greater force and equity from the increased population, wealth, production, and tonnage of the States on the Canadian frontier. Since Mr. Clay advanced his argument in behalf of our right the principle for which he contended has been frequently, and by various nations, recognized by law or by treaty, and has been extended to several other great rivers. By the treaty concluded at Mayence, in 1831, the Rhine was declared free from the point where it is first navigable into the sea. By the convention between Spain and Portugal, concluded in 1835, the navigation of the Douro, throughout its whole extent, was made free for the subjects of both crowns. In 1853 the Argentine Confederation by treaty threw open the free navigation of the Parana and the Uruguay to the merchant vessels of all nations. In 1856 the Crimean war was closed by a treaty which provided for the free navigation of the Danube. In 1858 Bolivia, by treaty, declared that it regarded the rivers Amazon and La Plata, in accordance with fixed principles of national law, as highways or chan nels, opened by nature, for the commerce of all nations. In 1859 the Paraguay was made free by treaty, and in December 1866 the Emperor of Brazil, by imperial decree, declared the Amazon to be open, to the frontier of Brazil, to the merchant ships of all nations. The greatest

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living British authority on this subject, while asserting the a right of the British claim, says: "It seems difficult to deny tha Britain may ground her refusal upon strict law, but it is equa cult to deny, first, that in so doing she exercises harshly an extr hard law; secondly, that her conduct with respect to the navig the St. Lawrence is in glaring and discreditable inconsistency conduct with respect to the navigation of the Mississippi. ground that she possessed a small domain, in which the Mississi its rise, she insisted on the right to navigate the entire volum waters. On the ground that she possesses both banks of the S rence, where it disembogues itself into the sea, she denies to the States the right of navigation, though about one-half of the w Lakes Ontario, Erie, Huron, and Superior, and the whole of Lak igan, through which the river flows, are the property of the States."

The whole nation is interested in securing cheap transportati the agricultural States of the West to the Atlantic seaboard. citizens of those States it secures a greater return for their labor inhabitants of the seaboard it affords cheaper food; to the natio crease in the annual surplus of wealth. It is hoped that the ment of Great Britain will see the justice of abandoning the nar inconsistent claim to which her Canadian provinces have urged herence.

Our depressed commerce is a subject to which I called your attention at the last session, and suggested that we will in the have to look more to the countries south of us, and to China and for its revival. Our representatives to all 'these governmen exerted their influence to encourage trade between the United and the countries to which they are accredited. But the fact exi the carrying is done almost entirely in foreign bottoms, and wh state of affairs exists we cannot control our due share of the co of the world. That between the Pacific States and China and J about all the carrying trade now conducted in American ves would recommend a liberal policy toward that line of American ers, one that will insure its success and even increased usefulnes

The cost of building iron vessels, the only ones that can comp foreign ships in the carrying trade, is so much greater in the States than in foreign countries that, without some assistance f Government, they cannot be successfully built here. There will eral propositions laid before Congress in the course of the pres sion looking to a remedy for this evil. Even if it should be at so to the National Treasury, I hope such encouragement will be give secure American shipping on the high seas and American ship-b at home.

The condition of the archives at the Department of State calls early action of Congress. The building now rented by that Depa

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