These recent examples show that the mode which the
United States have proposed to Spain for adjusting the pending claims is
just and feasible, and that it may be agreed to by either nation without
dishonor. It is to be hoped that this moderate demand may be acceded
to by Spain without further delay. Should the pending negotiations,
unfortunately and unexpectedly, be without result, it will then become
my duty to communicate that fact to Congress and invite its action on
the subject.

The long-deferred peace conference between Spain and the allied South
American Republics has been inaugurated in Washington under the auspices
of the United States. Pursuant to the recommendation contained in the
resolution of the House of Representatives of the 17th of December,
1866, the executive department of the Government offered its friendly
offices for the promotion of peace and harmony between Spain and the
allied Republics. Hesitations and obstacles occurred to the acceptance
of the offer. Ultimately, however, a conference was arranged, and was
opened in this city on the 29th of October last, at which I authorized
the Secretary of State to preside. It was attended by the ministers of
Spain, Peru, Chile, and Ecuador. In consequence of the absence of a
representative from Bolivia, the conference was adjourned until the
attendance of a plenipotentiary from that Republic could be secured or
other measures could be adopted toward compassing its objects.

The allied and other Republics of Spanish origin on this continent may
see in this fact a new proof of our sincere interest in their welfare,
of our desire to see them blessed with good governments, capable of
maintaining order and of preserving their respective territorial
integrity, and of our sincere wish to extend our own commercial and
social relations with them. The time is not probably far distant when,
in the natural course of events, the European political connection with
this continent will cease. Our policy should be shaped, in view of this
probability, so as to ally the commercial interests of the Spanish
American States more closely to our own, and thus give the United States
all the preeminence and all the advantage which Mr. Monroe, Mr. Adams,
and Mr. Clay contemplated when they proposed to join in the congress of
Panama.

During the last session of Congress a treaty for the annexation of the
Republic of San Domingo to the United States failed to receive the
requisit