s will be required for establishing suitable commissions of
survey. The boundary dispute between Mexico and Guatemala, which led
this Government to proffer its friendly counsels to both parties, has
been amicably settled.

No change has occurred in our relations with Venezuela. I again invoke
your action in the matter of the pending awards against that Republic,
to which reference was made by a special message from the Executive at
your last session.

An invitation has been received from the Government of Venezuela to
send representatives in July, 1883, to Caracas for participating in the
centennial celebration of the birth of Bolivar, the founder of South
American independence. In connection with this event it is designed
to commence the erection at Caracas of a statue of Washington and
to conduct an industrial exhibition which will be open to American
products. I recommend that the United States be represented and that
suitable provision be made therefor.

The elevation of the grade of our mission in Central America to the
plenipotentiary rank, which was authorized by Congress at its late
session, has been since effected.

The war between Peru and Bolivia on the one side and Chile on the other
began more than three years ago. On the occupation by Chile in 1880 of
all the littoral territory of Bolivia, negotiations for peace were
conducted under the direction of the United States. The allies refused
to concede any territory, but Chile has since become master of the whole
coast of both countries and of the capital of Peru. A year since, as
you have already been advised by correspondence transmitted to you in
January last, this Government sent a special mission to the belligerent
powers to express the hope that Chile would be disposed to accept a
money indemnity for the expenses of the war and to relinquish her demand
for a portion of the territory of her antagonist.

This recommendation, which Chile declined to follow, this Government did
not assume to enforce; nor can it be enforced without resort to measures
which would be in keeping neither with the temper of our people nor with
the spirit of our institutions.

The power of Peru no longer extends over its whole territory, and in the
event of our interference to dictate peace would need to be supplemented
by the armies and navies of the United States. Such interference would
almost inevitably lead to the establishment of a protectorate--a result
utterly at odds