ions
which the parties concerned in the project of the railroad deem
necessary for their protection and security. Further consideration, it
is to be hoped, or some modification of terms, may yet reconcile the
differences existing between the two Governments in this respect.

Fresh instructions have recently been given to the minister of the
United States in Mexico, who is prosecuting the subject with
promptitude and ability.

Although the negotiations with Portugal for the payment of claims of
citizens of the United States against that Government have not yet
resulted in a formal treaty, yet a proposition, made by the Government
of Portugal for the final adjustment and payment of those claims, has
recently been accepted on the part of the United States. It gives me
pleasure to say that Mr. Clay, to whom the negotiation on the part of
the United States had been intrusted, discharged the duties of his
appointment with ability and discretion, acting always within the
instructions of his Government.

It is expected that a regular convention will be immediately
negotiated for carrying the agreement between the two Governments into
effect.

The commissioner appointed under the act of Congress for carrying into
effect the convention with Brazil of the 27th of January, 1849, has
entered upon the performance of the duties imposed upon him by that
act. It is hoped that those duties may be completed within the time
which it prescribes. The documents, however, which the Imperial
Government, by the third article of the convention, stipulates to
furnish to the Government of the United States have not yet been
received. As it is presumed that those documents will be essential for
the correct disposition of the claims, it may become necessary for
Congress to extend the period limited for the duration of the
commission. The sum stipulated by the fourth article of the convention
to be paid to this Government has been received.

The collection in the ports of the United States of discriminating
duties upon the vessels of Chili and their cargoes has been suspended,
pursuant to the provisions of the act of Congress of the 24th of
May, 1828. It is to be hoped that this measure will impart a fresh
impulse to the commerce between the two countries, which of late, and
especially since our acquisition of California, has, to the mutual
advantage of the parties, been much augmented.

Peruvian guano has become so desirable an article to the