Frye, and
George Gray, Senators of the United States, and Whitelaw Reid to be the
peace commissioners on the part of the United States. Proceeding in due
season to Paris, they there met on the 1st of October five commissioners
similarly appointed on the part of Spain. Their negotiations have made
hopeful progress, so that I trust soon to be able to lay a definitive
treaty of peace before the Senate, with a review of the steps leading
to its signature.

I do not discuss at this time the government or the future of the new
possessions which will come to us as the result of the war with Spain.
Such discussion will be appropriate after the treaty of peace shall
be ratified. In the meantime and until the Congress has legislated
otherwise it will be my duty to continue the military governments which
have existed since our occupation and give to the people security in
life and property and encouragement under a just and beneficent rule.

As soon as we are in possession of Cuba and have pacified the island
it will be necessary to give aid and direction to its people to form
a government for themselves. This should be undertaken at the earliest
moment consistent with safety and assured success. It is important that
our relations with this people shall be of the most friendly character
and our commercial relations close and reciprocal. It should be our
duty to assist in every proper way to build up the waste places of the
island, encourage the industry of the people, and assist them to form a
government which shall be free and independent, thus realizing the best
aspirations of the Cuban people.

Spanish rule must be replaced by a just, benevolent, and humane
government, created by the people of Cuba, capable of performing all
international obligations, and which shall encourage thrift, industry,
and prosperity and promote peace and good will among all of the
inhabitants, whatever may have been their relations in the past. Neither
revenge nor passion should have a place in the new government. Until
there is complete tranquillity in the island and a stable government
inaugurated military occupation will be continued.

With the one exception of the rupture with Spain, the intercourse of
the United States with the great family of nations has been marked with
cordiality, and the close of the eventful year finds most of the issues
that necessarily arise in the complex relations of sovereign states
adjusted or presenting no seriou