ontingent exemptions from tonnage dues were made
as to vessels entering ports of the United States from any foreign port
in North and Central America, the West India Islands, the Bahamas and
Bermudas, Mexico, and the Isthmus as far as Aspinwall and Panama. The
Governments of Belgium, Denmark, Germany, Portugal, and Sweden and
Norway have asserted, under the favored-nation clause in their treaties
with the United States, a claim to like treatment in respect of vessels
coming to the United States from their home ports. This Government,
however, holds that the privileges granted by the act are purely
geographical, inuring to any vessel of any foreign power that may choose
to engage in traffic between this country and any port within the
defined zone, and no warrant exists under the most-favored-nation clause
for the extension of the privileges in question to vessels sailing to
this country from ports outside the limitation of the act.

Undoubtedly the relations of commerce with our near neighbors, whose
territories form so long a frontier line difficult to be guarded, and
who find in our country, and equally offer to us, natural markets,
demand special and considerate treatment. It rests with Congress to
consider what legislative action may increase facilities of intercourse
which contiguity makes natural and desirable.

I earnestly urge that Congress recast the appropriations for the
maintenance of the diplomatic and consular service on a footing
commensurate with the importance of our national interests. At every
post where a representative is necessary the salary should be so graded
as to permit him to live with comfort. With the assignment of adequate
salaries the so-called notarial extraofficial fees, which our officers
abroad are now permitted to treat as personal perquisites, should be
done away with. Every act requiring the certification and seal of the
officer should be taxable at schedule rates and the fee therefor
returned to the Treasury. By restoring these revenues to the public use
the consular service would be self-supporting, even with a liberal
increase of the present low salaries.

In further prevention of abuses a system of consular inspection should
be instituted.

The appointment of a limited number of secretaries of legation at large,
to be assigned to duty wherever necessary, and in particular for
temporary service at missions which for any cause may be without a head,
should also be authorized.