Spain relative to the domination of the
Caroline Islands has attracted the attention of this Government by
reason of extensive interests of American citizens having grown up in
those parts during the past thirty years, and because the question of
ownership involves jurisdiction of matters affecting the status of our
citizens under civil and criminal law. While standing wholly aloof from
the proprietary issues raised between powers to both of which the United
States are friendly, this Government expects that nothing in the present
contention shall unfavorably affect our citizens carrying on a peaceful
commerce or there domiciled, and has so informed the Governments of
Spain and Germany.

The marked good will between the United States and Great Britain has
been maintained during the past year.

The termination of the fishing clauses of the treaty of Washington, in
pursuance of the joint resolution of March 3, 1883, must have resulted
in the abrupt cessation on the 1st of July of this year, in the midst
of their ventures, of the operations of citizens of the United States
engaged in fishing in British American waters but for a diplomatic
understanding reached with Her Majesty's Government in June last,
whereby assurance was obtained that no interruption of those operations
should take place during the current fishing season.

In the interest of good neighborhood and of the commercial intercourse
of adjacent communities, the question of the North American fisheries is
one of much importance. Following out the intimation given by me when
the extensory arrangement above described was negotiated, I recommend
that the Congress provide for the appointment of a commission in which
the Governments of the United States and Great Britain shall be
respectively represented, charged with the consideration and settlement,
upon a just, equitable, and honorable basis, of the entire question of
the fishing rights of the two Governments and their respective citizens
on the coasts of the United States and British North America. The
fishing interests being intimately related to other general questions
dependent upon contiguity and intercourse, consideration thereof in all
their equities might also properly come within the purview of such a
commission, and the fullest latitude of expression on both sides should
be permitted.

The correspondence in relation to the fishing rights will be submitted.

The arctic exploring steamer _Alert_, whi