h it is in the power of
Mexico to make in satisfaction of the just and long-deferred claims of
our citizens against her and the only means by which she can reimburse
the United States for the expenses of the war is a cession to the United
States of a portion of her territory. Mexico has no money to pay, and no
other means of making the required indemnity. If we refuse this, we can
obtain nothing else. To reject indemnity by refusing to accept a cession
of territory would be to abandon all our just demands, and to wage the
war, bearing all its expenses, without a purpose or definite object.

A state of war abrogates treaties previously existing between the
belligerents and a treaty of peace puts an end to all claims for
indemnity for tortious acts committed under the authority of one
government against the citizens or subjects of another unless they are
provided for in its stipulations. A treaty of peace which would
terminate the existing war without providing for indemnity would enable
Mexico, the acknowledged debtor and herself the aggressor in the war, to
relieve herself from her just liabilities. By such a treaty our citizens
who hold just demands against her would have no remedy either against
Mexico or their own Government. Our duty to these citizens must forever
prevent such a peace, and no treaty which does not provide ample means
of discharging these demands can receive my sanction.

A treaty of peace should settle all existing differences between the two
countries. If an adequate cession of territory should be made by such a
treaty, the United States should release Mexico from all her liabilities
and assume their payment to our own citizens. If instead of this the
United States were to consent to a treaty by which Mexico should again
engage to pay the heavy amount of indebtedness which a just indemnity to
our Government and our citizens would impose on her, it is notorious
that she does not possess the means to meet such an undertaking. From
such a treaty no result could be anticipated but the same irritating
disappointments which have heretofore attended the violations of similar
treaty stipulations on the part of Mexico. Such a treaty would be but a
temporary cessation of hostilities, without the restoration of the
friendship and good understanding which should characterize the future
intercourse between the two countries.

That Congress contemplated the acquisition of territorial indemnity when
that body m