actory.

Mexico continues to be a theater of civil war. While our political
relations with that country have undergone no change, we have at the same
time strictly maintained neutrality between the belligerents.

At the request of the States of Costa Rica and Nicaragua, a competent
engineer has been authorized to make a survey of the river San Juan
and the port of San Juan. It is a source of much satisfaction that the
difficulties which for a moment excited some political apprehensions and
caused a closing of the interoceanic transit route have been amicably
adjusted, and that there is a good prospect that the route will soon
be reopened with an increase of capacity and adaptation. We could not
exaggerate either the commercial or the political importance of that great
improvement.

It would be doing injustice to an important South American State not
to acknowledge the directness, frankness, and cordiality with which the
United States of Colombia have entered into intimate relations with this
government. A claims convention has been constituted to complete the
unfinished work of the one which closed its session in 1861.

The new liberal constitution of Venezuela having gone into effect with
the universal acquiescence of the people, the government under it has been
recognized and diplomatic intercourse with it has opened in a cordial
and friendly spirit. The long-deferred Aves Island claim has been
satisfactorily paid and discharged.

Mutual payments have been made of the claims awarded by the late joint
commission for the settlement of claims between the United States and
Peru. An earnest and cordial friendship continues to exist between the two
countries, and such efforts as were in my power have been used to remove
misunderstanding, and avert a threatened war between Peru and Spain.

Our relations are of the most friendly nature with Chile, the Argentine
Republic, Bolivia, Costa Rica, Paraguay, San Salvador, and Haiti.

During the past year no differences of any kind have arisen with any of
these republics, and on the other hand, their sympathies with the United
States are constantly expressed with cordiality and earnestness.

The claim arising from the seizure of the cargo of the brig Macedonian in
1821 has been paid in full by the Government of Chile.

Civil war continues in the Spanish part of San Domingo, apparently without
prospect of an early close.

Official correspondence has been freely opened with L