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YALE UNIVEESITY LIBEAEY
0'Ae ^^CUl^^cu^^ti^leclMm,

FORMED BY
James Abraham Hillhouse, B.A. 1749
James Hillhouse, B.A. 1773
James Abraham Hillhouse, B.A. 1808
James Hillhouse, B.A. 1873
Hemoved 1942 from the
Manor Souse in Sachem's Wood
GIFT OF
GEOBGE DUDLEY SEYMOUR

MESSAGE OF
THE PRESIDENT OF
THE UNITED STATES

ON

FOREIGN
RELATIONS
COMMUNICATED TO THE TWO HOUSES
OF CONGRESS DECEMBER 7, 1911

WASHINGTON 1911

MESSAGE.

To the Senate and House of Representatives :
The relations of the United States with other countries have
continued during the past twelve months upon a basis of the
usual good will and friendly intercourse.
ARBITRATION.
The year just passed marks an important general move
ment on the part of the Powers for broader arbitration. In
the recognition of the manifold benefits to mankind in the
extension of the policy of the settlement of international dis
putes by arbitration rather than by war, and in response to a
widespread demand for an advance in that direction on the
part of the people of the United States and of Great Britain
and of France, new arbitration treaties were negotiated last
spring with Great Britain and France, the terms of which were
designed, as expressed in the preamble of these treaties, to
extend the scope and obligations of the policy of arbitration
adopted in our present treaties with those Governments. To
pave the way for this treaty with the United States, Great
Britain negotiated an important modification in its alliance
with Japan, and the French Government also expedited the
negotiations with signal good will. The new treaties have been
submitted to the Senate and are awaiting its advice and consent
to their ratification. All the essentials of these important
treaties have long been known, and it is my earnest hope that
they will receive prompt and favorable action.
CLAIM OF ALSOP & CO. SETTLED.
I am glad to report that on July 5 last the American claim of
Alsop & Co. against the Government of Chile was finally dis
posed of by the decision of His Britannic Majesty George V, to
(3)

whom, as amiable compositeur, the matter had been referred
for determination. His Majesty made an award of nearly
$1,000,000 to the claimants, which was promptly paid by Chile.
The settlement of this controversy has happily eliminated from
the relations between the Republic of Chile and the United
States the only question which for two decades had given the
two foreign oflaces any serious concern and makes possible
the unobstructed development of the relations of friendship
which it has been the aim of this Government in every possible
way to further and cultivate.
ARBITRATIONS  PANAMA AND COSTA RICA  COLOMBIA AND HAITI.
In further illustration of the practical and beneficent appli
cation of the principle of arbitration and the underlying broad
spirit of conciliation, I am happy to advert to the part of the
United States in facilitating amicable settlement of disputes
which menaced the peace between Panama and Costa Rica and
between Haiti and the Dominican Republic.
Since the date of their independence, Colombia and Costa
Rica had been seeking a solution of a boundary dispute, which
came as an heritage from Colombia to the new Republic of
Panama, upon its beginning life as an independent nation.
Although the disputants had submitted this question for de
cision to the President of France under the terms of an arbi
tration treaty, the exact interpretation of the provisions of the
award rendered had been a matter of serious disagreement
between the two countries, both contending for widely different
lines even under the terms of the decision. Subsequently and
since 1903 this boundary question had been the subject of fruit
less diplomatic negotiations between the parties. In January,
1910, at the request of both Governments the agents represent
ing them met in conference at the Department of State and
subsequently concluded a protocol submitting this long-pending
controversy to the arbitral judgment of the Chief Justice of the
United States, who consented to act in this capacity. A bound
ary commission, according to the international agreement, has
now been appointed, and it is expected that the arguments
will shortly proceed and that this long-standing dispute will
be honorably and satisfactorily terminated.

Again, a few months ago it appeared that the Dominican Re
public and Haiti were about to enter upon hostilities because
of complications growing out of an acrimonious boundary dis
pute which the efforts of many years had failed to solve. The
Government of the United States, by a friendly interposition of
good offices, succeeded in prevailing upon the parties to place
their reliance upon some form of pacific settlement. Accord
ingly, on the friendly suggestion of this Government, the two
governments empowered commissioners to meet at Washing
ton in conference at the State Department in order to arrange .
the terms of submission to arbitration of the boundary contro
versy. CHAMIZAL ARBITRATION NOT SATISFACTORY.
Our arbitration of the Chamizal boundary question with
Mexico was unfortunately abortive, but with the earnest efforts
on the part of both Governments which its importance com
mands, it is felt that an early practical adjustment should
prove possible. LATIN AMERICA.
VENEZUELA.
During the past year the Republic of Venezuela celebrated
the one hundredth anniversary of its independence. The
United States sent, in honor of this event, a special embassy
to Caracas, where the cordial reception and generous hospi
tality shown it were most gratifying as a fui'ther proof of the
good relations and friendship existing between that country
and the United States.

The recent political events in Mexico received attention from
this Government because of the exceedingly delicate and diffi
cult situation created along our southern border and the
necessity for taking measures properly to safeguard American
interests. The Government of the United States, in its desire
to secure a proper observance and enforcement of the so-called
neutrality statutes of the Federal Government, issued direc
tions to the appropriate offlcers to exercise a diligent and vigi
lant regard for the requirements of such rules and laws.

6
Although a condition of actual armed conflict existed, there was
no official recognition of belligerency involving the technical
neutrality obligations of international law.
On the Gth of March last, in the absence of the Secretary of
State, I had a personal interview with Mr. "Wilson, the ambas
sador of the United States to Mexico, in which he reported to
me that the conditions in Mexico were much more critical than
the press dispatches disclosed; that President Diaz was on a
volcano of popular uprising; that the small outbreaks which
had occurred were only syinptomatic of the whole conditio^;
that a very large per cent, of the people were in sympathy with
the insurrection; that a general explosion was probable at any
time, in which case he feared that the 40,000 or more American
residents in Mexico might be assailed, and that the very large
American investments might be injured or destroyed.
After a conference with the Secretary of War and the Secre
tary of the Navy, I thought it wise to assemble an Army division
of full strength at San Antonio, Tex., a brigade of three regi
ments at Galveston, a brigade of Infantry in the Los Angeles
district of southern California, together with a squadron of
battleships and cruisers and transports at Galveston, and a
small squadron of ships at San Diego. At the same time,
through our representative at the City of Mexico, I expressed to
President Diaz the hope that no apprehensions might result
from unfounded conjectures as to these military maneuvers,
and assured him that they had no significance which should
cause concern to his Government.
The mobilization was effected with great promptness, and on
the 15th of March, through the Secretary of War and the Sec
retary of the Navy, in a letter addressed to the Chief of Staff, I
issued the following instructions :
" It seems my duty as Commander in Chief to place troops in
sufficient number where, if Congress shall direct that they enter
Mexico to save American lives and property, an effective move
ment may be promptly made. Meantime, the movement of the
troops to Texas and elsewhere near the boundary, accompanied
with sincere assurances of the utmost good-will toward the
present Mexican Government and with larger and more fre
quent patrols along the border to prevent insurrectionary

expeditions from American soil, will hold up the hands of
the existing Government and will have a healthy moral effect
to prevent attacks upon Americans and their property in any
subsequent general internecine strife. Again, the sudden mobi
lization of a division of troops has been a great test of our
Army and full of useful instruction, while the maneuvers that
are thus made possible can occupy the troops and their officers
to great advantage.
" The assumption by the press that I contemplate intervention
on Mexican soil to protect American lives or property is of
course gratuitous, because I seriously doubt whether I have
such authority under any circumstances, and if I had I would
not exercise it without express congressional approval. Indeed,
as you know, I have already declined, without Mexican consent,
to order a troop of Cavalry to protect the breakwater we are
constructing just across the border in Mexico at the mouth of
tbe Colorado River to save the Imperial Valley, although the
insurrectos had scattered the Mexican troops and were taking
our horses and supplies and frightening our workmen away.
My determined purpose, however, is to be in a position so that
when danger to American lives and property in Mexico threat
ens and the existing Government is rendered helpless by the
insurrection, I can promptly execute congressional orders to
protect them, with effect.
"Meantime, I send you this letter, through the Secretary, to
call your attention to some things in connection with the pres
ence of the division in the Southwest which have doubtless
occurred to you, but which I wish to emphasize.
" In the first place, I want to make the mobilization a first-
class training for the Army, and I wish you would give your
time and that of the War College to advising and carrying out
maneuvers of a useful character, and plan to continue to do
this during the next three months. By that time we may expect
that either Ambassador Wilson's fears will have been realized
and chaos and its consequences have ensued, or that the pres
ent Government of Mexico will have so readjusted matters
as to secure tranquillity — a result devoutly to be wished. The
troops can then be returned to their posts. I understood from
you in Washington that Gen. Aleshire said that you could
probably meet all the additional expense of this whole move
ment out of the present appropriations if the troops continue
in Texas for three months. I sincerely hope this is so. I
observe from the newspapers that you have no blank car
tridges, but I presume that this is an error, or that it will be
18197°— 11  2

8
easy to procure those for use as soon as your maneuvers
begin. " Second. Texas is a State ordinarily peaceful, but you can
not put 20,000 troops into it without running some risk of a
collision between the people of that State, and especially the
Mexicans who live in Texas near the border and who sympa
thize with the insurrectos, and the Federal soldiers. For that
reason I beg you to be as careful as you can to prevent friction
of any kind. We were able in Cuba, with the army of pacifi
cation there of something more than 5,000 troops, to maintain
them for a year without any trouble, and I hope you can do
the same thing in Texas. Please give your attention to this, and
advise all the officers in command of the necessity for very
great circumspection in this regard.
"Third. One of the great troubles in thc concentration of
troops is the danger of disease, and I suppose that you have
adopted the most modern methods for the preventing and, if
necessary, for stamping out epidemics. That is so much a part
of a campaign that it hardly seems necessary for me to call
attention to it.
"Finally, I wish you to examine the question of the patrol
of the border and put as many troops on that work as is prac
ticable, and more than are now engaged in it, in order to pre
vent the use of our borderland for the carrying on of the insur
rection. I have given assurances to the Mexican ambassador
on this point.
" I sincerely hope that this experience will always be remem
bered by the Army and Navy as a useful means of education,
and I should be greatly disappointed if it resulted in any injurj'
or disaster to our forces from any cause. I have taken a good
deal of responsibility in ordering this mobilization, but I am
ready to answer for it if only you and those under you use the
utmost care to avoid the difflculties which I have pointed out.
" You may have a copy of this letter made and left vnth Gen.
Carter and such other generals in command as you may think
wise and necessary to guide them in their course, but to be
regarded as confidential."
I am more than happy to here record the fact that all appre
hensions as to the effect of the presence of so large a military
force in Texas proved groundless; no disturbances occurred;
the conduct of the troops was exemplary and the public recep
tion and treatment of them was all that could have been de
sired, and this notwithstanding the presence of a large number
of Mexican refugees in the border territory.

From time to time communications were received from Am
bassador Wilson, who had returned to Mexico, confirming the
view that the massing of American troops in the neighborhood
had had good effect. By dispatch of April 3, 1911, the ambas
sador said:
"The continuing gravity of the situation here and the chaos
that would ensue should the constitutional authorities be
eventually overthrown, thus greatly increasing the danger to
which American lives and property are already subject, con
flrm the wisdom of the President in taking those military
precautions which, making every allowance for the dignity and
the sovereignty of a friendly state, are due to our nationals
abroad. "Charged as I am with the responsibility of safeguarding
these lives and property, I am bound to say to the department
that our military dispositions on the frontier have produced an
effective impression on the Mexican mind and may, at any
moment, prove to be the only guaranties for the safety of our
nationals and their property. If it should eventuate that con
ditions here require more active measures by the President
and Congress, sporadic attacks might be made upon the lives
and property of our nationals, but the ultimate result would be
order and adequate protection."
The insurrection continued and resulted in engagements be
tween the regular Mexican troops and the insurgents, and this
along the border, so that in several instances bullets from the
contending forces struck American citizens engaged in their
lawrful occupations on American soil.
Proper protests were made against these invasions of Ameri
can rights to the Mexican authorities. On April 17, 1911, I
received the following telegram from the governor of Arizona :
"As a result of to-day's flghting across the international line,
but within gunshot range of the heart of Douglas, flve Ameri
cans wounded on this side of the line. Everything points to
repetition of these casualties on to-morrow, and while the
Federals seem disposed to keep their agreement not to flre into
Douglas, the position of the insurrectionists is such that when
flghting occurs on the east and southeast of the intrenchments
people living in Douglas are put in danger of their lives. In
my judgment radical measures are needed to protect our inno
cent people, and if anything can be done to stop the flghting at

10
Agua Prieta the situation calls for such action. It is impossible
to safeguard the people of Douglas unless the town be vacated.
Can anything be done to relieve situation, now acute? "
After a conference with the Secretary of State, the following
telegram was sent to Governor Sloan, on April 18, 1911, and
made public:
" Your dispatch received. Have made urgent demand upon
Mexican Government to issue instructions to prevent flring
across border by Mexican federal troops, and am awaiting
reply. Meantime I have sent direct warning to the Mexican
and insurgent forces near Douglas. I infer from your dispatch
that both parties attempt to heed the warning, bul that in the
strain and exigency of the contest wild bullets still flnd their
way into Douglas. The situation might justify me in ordering
our troops to cross the border and attempt to stop the flghting,
or to fire upon both combatants from the American side. But
if I take this step, I must face the possibility of resistance and
greater bloodshed, and also the danger of having our motives
misconstrued and misrepresented, and of thus inflaming Mexi
can popular indignation against many thousand Americans
now in Mexico and jeopardizing their lives and property. The
pressure for general intervention under such conditions it
might not be practicable to resist. It is impossible to foresee
or reckon the consequences of such a course, and we must use
the greatest self-restraint to avoid it. Pending my urgent repre
sentation to the Mexican Government, I can not therefore order
the troops at Douglas to cross the border, but I must ask you
and the local authorities, in case the same danger recurs, to
direct the people of Douglas to place themselves where bullets
can not reach them and thus avoid casualty. I am loatli to
endanger Americans in Mexico, where they are necessarily
exposed, by taking a radical step to prevent injury to Americans
on our side of the border who can avoid it by a temporary
inconvenience." I am glad to say that no further invasion of American rights
of any substantial character occurred.
The presence of a large military and naval force available
for prompt action, near the Mexican border, proved to be most
fortunate under the somewhat trying conditions presented by
this invasion of American rights. Had no movement thereto
fore taken place, and because of these events it had been
necessary then to bring about the mobilization, it must have

11
had sinister signiflcance. On the other hand, the presence of
the troops before and at the time of the unfortunate killing and
wounding of American citizens at Douglas, made clear that the
restraint exercised by our Government in regard to this oc
currence was not due to a lack of force or power to deal with
it promptly and aggressively, but was due to a real desire to
use every means possible to avoid direct intervention in the
affairs of our neighbor, whose friendship we valued and were
most anxious to retain.
The policy and action of this Government were based upon
an earnest friendliness for the Mexican people as a whole, and
it is a matter of gratiflcation to note that this attitude of strict
impartiality as to all factions in Mexico and of sincere friend
ship for the neighboring nation, without regard for party alle
giance, has been generally recognized and has resulted in an
even closer and more syinpathetic understanding between the
two Republics and a warmer regard one for the other. Action
to suppress violence and restore tranquillity throughout the
Mexican Republic was of peculiar interest to this Government,
in that it concerned the safeguarding of American life and
property in that country. The Government of the United States
had occasion to accord permission for the passage of a body of
Mexican rurales through Douglas, Arizona, to Tia Juana, Mex
ico, for the suppression of general lawlessness which had for
some time existed in the region of northern Lower California.
On May 25, 1911, President Diaz resigned, Senor de la Barra
was chosen provisional President. Elections for President and
Vice President were thereafter held throughout the Republic,
and Senor Francisco I. Madero was formally declared elected
on- October 15 to the chief magistracy. On November 6 Presi
dent Madero entered upon the duties of his office.
Since the inauguration of President Madero a plot has been
unearthed against the present Government, to begin a new in
surrection. Pursuing the same consistent policy which this
administration has adopted from the beginning, it directed an
investigation into the conspiracy charged, and this investiga
tion has resulted in the indictment of Gen. Bernardo Reyes and
others and the seizure of a number of offlcers and men and

12
horses and accoutrements assembled upon the soil of Texas
for the purpose of invading Mexico. Similar proceedings had
been taken during the insurrection against the Diaz Govern
ment resulting in the indictments and prosecution of persons
found to be engaged in violating the neutrality laws of the
United States in aid of that uprising.
The record of this Government in respect of the recognition
of constituted authority in Mexico therefore is clear.
CENTEAI, AMEEICA — HONDTTEAS AND NICABAGTJA TEEATIES PEOPOSED.
As to the situation in Central America, I have taken occasion
in the past to emphasize most strongly the importance that
should be attributed to the consummation of the conventions
between the Republics of Nicaragua and of Honduras and this
country, and I again earnestly recommend that the necessary
advice and consent of the Senate be accorded to these treaties,
which will make it possible for these Central American Repub
lics to enter upon an era of genuine economic national devel
opment. The Government of Nicaragua which has already
taken favorable action on the convention, has found it neces
sary, pending the exchange of final ratifications, to enter into
negotiations with American bankers for the purpose of securing
a temporary loan to relieve the present financial tension. In
connection with this temporary loan and in the hope of consum
mating, through the ultimate operation of the convention, a
complete and lasting economic regeneration, the Government
of Nicaragua has also decided to engage an American citizen as
collector general of customs. The claims commission on which
the services of two American citizens have been sought, and the
work of the American financial adviser should accomplish a
lasting good of inestimable beneflt to the prosperity, commerce,
and peace of the Republic. In considering the ratiflcation of
the conventions with Nicaragua and Honduras, there rests with
the United States the heavy responsibility of the fact that their
rejection here might destroy the progress made and consign
the Republics concerned to still deeper submergence iij bank
ruptcy, revolution, and national jeopardy.

13
PANAMA.
Our relations with the Republic of Panama, peculiarly im
portant, due to mutual obligations and the vast interests
created by the canal, have continued in the usual friendly
manner, and we have been glad to make appropriate expres
sion of our attitude of sympathetic interest in the endeavors
of our neighbor in undertaking the development of the rich
resources of the country. With reference to the internal po
litical affairs of the Republic, our obvious concern is in the
maintenance of public peace and constitutional order, and the
fostering of the general interests created by the actual relations
^of the two countries, without the manifestation of any prefer-^
ence for the success of either of the political parties.
THE PAN AMERICAN UNION.
The Pan American Union, formerly known as the Bureau of
American Republics, maintained by the joint contributions of
all the American nations, has during the past year enlarged its
practical work as an international organization, and continues
to prove its usefulness as an agency for the mutual develop
ment of commerce, better acquaintance, and closer intercourse
between the United States and her sister American republics.
THE FAR EAST.
THE CHINESE LOANS.
The past year has been marked in our relations with China
by the conclusion of two important international loans, one for
the construction of the Hukuang railways, the other for the
carrying out of the currency reform to which China was
pledged by treaties with the United States, Great Britain, and
Japan, of which mention was made in my last annual message.
It will be remembered that early in 1909 an agreement was
consummated among British, French, and German flnancial
groups whereby they proposed to lend the Chinese Govern
ment funds for the construction of railways in the Prov
inces of Hunan and Hupeh, reserving for their nationals the
privilege of engineering the construction of the lines and of

14
furnishing the materials required for the work. After nego
tiations with the Governments and groups concerned an agree
ment was reached whereby American, British, French, and
German nationals should participate upon equal terms in
this important and useful undertaking. Thereupon the flnan
cial groups, supported by their respective Governments, began
negotiations with the Chinese Government which terminated
in a loan to China of $30,000,000, with the privilege of increas
ing the amount to $50,000,000. The cooperative construction
of these trunk lines should be of immense advantage, mate
rially and otherwise, to China and should greatly facilitate the
development of the bountiful resources of the Empire. On
the other hand, a large portion of these funds is to be expended
for materials, American products having equal preference
with those of the other three lending nations, and as the con
tract provides for branches and extensions subsequently to be
built on the same terms the opportunities for American mate
rials will reach considerable proportions.
Knowing the interest of the United States in the reform of
Chinese currency, the Chinese Government, in the autumn of
1910, sought the assistance of the American Government to pro
cure funds with which to accomplish that all-important reform.
In the course of the subsequent negotiations there was combined
with the proposed currency loan one for certain industrial
developments in Manchuria, the two loans aggregating the sum
of $50,000,000. While this was originally to be solely an Ameri
can enterprise, the American Government, consistently with its
desire to secure a sympathetic and practical cooperation of the
great powers toward maintaining the principle of equality of
opportunity and the administrative integrity of China, urged the
Chinese Government to admit to participation in the currency
loan the associates of the American group in the Hukuang loan.
While of immense importance in itself, the reform contem
plated in making this loan is but preliminary to other and more
comprehensive flscal reforms which will be of incalculable bene
flt to China and foreign interests alike, since they will strengthen
the Chinese Empire and promote the rapid development of
international trade.

15

NEUTBAL FINANCIAL ADVISER.

When these negotiations were begun, it was understood that
a flnancial adviser was to be employed by China in connection
with the reform, and in order that absolute equality in all
respects among the lending nations might be scrupulously ob
served, the American Government proposed the nomination
of a neutral adviser, which was agreed to by China and the
other Governments concerned. On September 28, 1911, Dr.
Vissering, president of the Dutch Java Bank and a flnancier
of wide experience in the Orient, was recommended to the
Chinese Government for the post of monetary adviser.
Especially important at the present, when the ancient Chi
nese Empire is shaken by civil war incidental to its awakening
to the many influences and activities of modernization, are the
cooperative policy of good understanding which has been fos
tered by the international projects referred to above and the
general sympathy of view among all the Powers interested in
the Far East. While safeguarding the interests of our na
tionals, this Government is using its best efforts in continuance
of its traditional policy of sympathy and friendship toward the
Chinese Empire and its people, with the confldent hope for
their economic and administrative development, and with the
constant disposition to contribute to their welfare in all proper
ways consistent with an attitude of strict impartiality as be
tween contending factions.
For the first time in the history of the two countries, a Chinese
cruiser, the Haichi, under the command of Admiral Ching,
recently visited New York, where the officers and men were
given a cordial welcome.

NEW JAPANESE TREATY.

The treaty of commerce and navigation between the United
States and Japan, signed in 1894, would by a strict interpreta
tion of its provisions have terminated on July 17, 1912. Japan's
general treaties with the other powers, however, terminated in
1911, and the Japanese Government expressed an earnest desire
to conduct the negotiations for a new treaty with the United
States simultaneously with its negotiations with the other

16
powers. • There were a number of important questions involved
in the treaty, including the immigration of laborers, revision of
the customs tariff, and the right of Americans to hold real
estate in Japan. The United States consented to waive all tech
nicalities and to enter at once upon negotiations for a new
treaty on the understanding that there should be a continuance
throughout the life of the treaty of the same effective measures
for the restriction of immigration of laborers to American terri
tory which had been in operation with entire satisfaction to
both Governments since 1908. The Japanese Government ac
cepted this basis of negotiation, and a new treaty was quickly
concluded, resulting in a highly satisfactory settlement of the
other questions referred to.
A satisfactory adjustment has also been effected of the ques
tions growing out of the annexation of Korea by Japan.
The recent visit of Admiral Count Togo to the United States
as the Nation's guest afforded a welcome opportunity to demon
strate the friendly feeling so happily existing between the two
countries. SIAM.
There has been a change of sovereigns in Siam and the
American minister at Bangkok was accredited in a special
capacity to represent the United States at the coronation cere
mony of the new King. EUROPE AND THE NEAR EAST.
In Europe and the Near East, during the past twelve-month,
there has been at times considerable political unrest. The
Moroccan question, which for some months was the cause of
great anxiety, happily appears to have reached a stage at which
it need no longer be regarded with concern. The Ottoman
Empire was occupied for a period by strife in Albania and is
now at war with Italy. In Greece and the Balkan countries
the disquieting potentiahties of this situation have been more
or less felt. Persia has been the scene of a long internal strug
gle. These conditions have been the cause of uneasiness in
European diplomacy, but thus far without direct pohtical
concern to the United States.

17
In the war wbich unhappily exists between Italy and Turkey
this Government has no direct political interest, and I took
occasion at the suitable time to issue a proclamation of neu
trality in that conflict. At the same time all necessary steps
have been taken to safeguard the personal interests of Ameri
can citizens and organizations in so far as affected by the war.
COMMEECB WITH THE NEAR EAST.
In spite of the attendant economic uncertainties and detri
ments to commerce, the United States has gained markedly in
its commercial standing with certain of the nations of the
Near East. Turkey, especially, is beginning to come into closer
relations with the United States through the new interest of
American manufacturers and exporters in the possibilities of
those regions, and it is hoped that foundations are being laid
for a large and mutually beneficial exchange of commodities
between the two countries. This new interest of Turkey in
American goods is indicated by the fact that a party of promi
nent merchants from a large city in Turkey recently visited
the United States to study conditions of manufacture and ex
port here, and to get into personal touch with American mer
chants, with a view to cooperating more intelligently in
opening up the markets of Turkey and the adjacent countries
to our manufactures. Another indication of this new interest
of America in the commerce of the Near East is the recent visit
of a large party of American merchants and manufacturers to
central and eastern Europe, where they were entertained by
prominent officials and organizations of tbe large cities, and
new bonds of friendship and understanding were established
which can not but lead to closer and greater commercial
interchange. COEONATION OF KING GEOROE V.
The 22d of June of the present year marked the coronation
of His Britannic Majesty King George V. In honor of this aus
picious occasion I sent a special embassy to London. The
courteous and cordial welcome extended to this Government's
representatives by His Majesty and the people of Great Britain
has further emphasized the strong bonds of friendship happily
existing between the two nations.

18
SETTLEMENT OF LONG-STANDING DIFFERENCES WITH GEEAT BEITAIN.
As the result of a determined effort on the part of both Great
Britain and the United States to settle all of their outstanding
differences a number of treaties have been entered into between
the two countries in recent years, by which nearly all of the
unsettled questions between them of any importance have
either been adjusted by agreement or arrangements made for
their settlement by arbitration. A number of the unsettled
questions referred to consist of pecuniary claims presented by
each country against the other, aud in order that as many of
these claims as possible should be settled by arbitration a
special agreement for that purpose was entered into between
the two Governments on the 18th day of August, 1910, in ac
cordance with Article II of the general arbitration treaty vsdth
Great Britain of April 4, 1908. Pursuant to the provisions of
this special agreement a schedule of claims has already been
agreed upon, and the special agreement, together with this
schedule, received the approval of the Senate when submitted to
it for that purpose at the last session of Congress. Negotiations
between the two Governments for the preparation of an addi
tional schedule of claims are already well advanced, and it is
my intention to submit such schedule as soon as it is agreed
upon to the Senate for its- approval, in order that the arbitra
tion proceedings may be undertaken at an early date. In this
connection the attention of Congress is particularly called to
the necessity for an appropriation to cover the expense incurred
in submitting these claims to arbitration.
PEESENTATION TO GERMANY OF REPLICA OF VON STEUBEN STATUE.
In pursuance of the act of Congress, approved June 23, 1910,
the Secretary of State and the Joint Committee on the Library
entered into a contract with the sculptor, Albert Jaegers, for
the execution of a bronze replica of the statue of Gen. von
Steuben erected in Washington, for presentation to His Majesty
the German Emperor and the German nation in recognition of
the gift of the statue of Frederick the Great made by the
Emperor to the people of the United States.

19
The presentation was made on September 2 last by repre
sentatives whom I commissioned as the special mission of this
Government for the purpose.
The German Emperor has conveyed to me by telegraph, on
his own behalf and that of the German people, an expression
of appreciative thanks for this action of Congress.
RUSSIA.
By direction of the State Department, our ambassador to Rus
sia has recently been having a series of conferences with the
minister of foreign affairs of Russia, with a view to securing a
clearer understanding and construction of the treaty of 1832
between Russia and the United States and the modification of
any existing Russian regulations which may be found to inter
fere in any way with the full recognition of the rights of Ameri
can citizens under this treaty. I believe that the Government of
Russia is addressing itself seriously to the need of changing the
present practice under the treaty and that sufficient progress
has been made to warrant the continuance of these conferences
in the hope that there may soon be removed any justification
of the complaints of treaty violation now prevalent in this
country. I expect that immediately after the Christmas recess I shall
be able to make a further communication to Congress on this
subject. LIBERIA.
Negotiations for the amelioration of conditions found to
exist in Liberia by the American commission, undertaken
through the Department of State, have been concluded and it is
only necessary for certain formalities to be arranged in secur
ing the loan which it is hoped will place that republic on a
practical financial and economic footing.
RECOGNITION OF POETUGUESE EEPUBLIC.
The National Constituent Assembly, regularly elected by the
vote of the Portuguese people, having on June 19 last unani
mously proclaimed a republican form of government, the offi
cial recognition of the Government of the United States was
given to the new Republic in the afternoon of the same day.

20

SPITZBEEGEN ISLANDS.

Negotiations for the betterment of conditions existing in the
Spitzbergen Islands and the adjustment of conflicting claims
of American citizens and Norwegian subjects to lands in that
archipelago are still in progress.
INTERNATIONAL CONVENTIONS AND CONFERENCES.
INTEENATIONAL PRIZE COURT.
The supplementary protocol to The Hague convention for the
establishment of an international prize court, mentioned in my
last annual message, embodying stipulations providing for an
alternative procedure which would remove the constitutional
objection to that part of The Hague convention which provides
that there may be an appeal to the proposed court from the
decisions of national courts, has received the signature of the
governments parties to the original convention and has been
ratified by the Government of the United States, together with
the prize court convention.
The deposit of the ratifications with the Government of the
Netherlands awaits action by the powers on the declaration,
signed at London on February 26, 1909, of the rules of inter
national law to be recognized within the meaning of article 7
of The Hague convention for the establishment of an Interna
tional Prize Court. FUR-SEAL TREATY.
The fur-seal controversy, which for nearly twenty-five years
has been the source of serious friction between the United States
and the powers bordering upon the north Pacific Ocean, whose
subjects have been permitted to engage in pelagic sealing against
the fur-seal herds having their breeding grounds within the juris
diction of the United States, has at last been satisfactorily
adjusted by the conclusion of the north Pacific sealing conven
tion entered into between the United States, Great Britain,
Japan, and Russia on the 7th of July last. This convention is
a conservation measure of very great importance, and if it is
carried out in the spirit of reciprocal concession and advantage
upon which it is based, there is every reason to believe that not
only will it result in preserving the fur-seal herds of the north

21
Pacific Ocean and restoring them to their former value for
the purposes of commerce, but also that it will afford a per
manently satisfactory settlement of a question the only other
solution of which seemed to be the total destruction of the fur
seals. In another aspect, also, this convention is of importance
in that it furnishes an illustration of the feasibility of securing a
general international game law for the protection of other
mammals of the sea, the preservation of which is of importance
to all the nations of the world.
LEGISLATION NECESSARY.
The attention of Congress is especially called to the necessity
for legislation on the part of the United States for the purpose
of fulfilling the obligations assumed under this convention, to
which the Senate gave its advice and consent on the 24th day
of July last. PROTECTION OF INDUSTRIAL PROPERTY UNION.
The conference of the International Union for the Protection
of Industrial Property, which, under the authority of Congress,
convened at Washington on May 16, 1911, closed its labors on
June 2, 1911, by the signature of three acts, as follows :
(1) A convention revising the Paris convention of March 20,
1883, for the protection of industrial property, as modified by
the additional act signed at Brussels on December 14, 1900;
(2) An arrangement to replace the arrangement signed at
Madrid on April 14, 1891, for the international registration of
trade-marks, and the additional act with regard thereto signed
at Brussels on December 14, 1900; and
(3) An arrangement to replace the arrangement signed at
Madrid on April 14, 1891, relating to the repression of false in
dication of production of merchandise.
The United States is a signatory of the first convention only,
and this will be promptly submitted to the Senate.
INTERNATIONAL OPIUM COMMISSION.
In a special message transmitted to the Congress on the 7th of
January, 1911, in which I concurred in the recommendations
made by the Secretary of State in regard to certain needful

22
legislation for the control of our interstate and foreign traffic
in opium and other menacing drugs, I quoted from my annual
message of December 7, 1909, in which I announced that the
results of the International Opium Commission held at Shang
hai in February, 1909, at the invitation of the United States, had
been laid before this Government; that the report of that com
mission showed that China was making remarkable progress
and admirable efforts toward the eradication of the opium evil;
that the interested Governments had not permitted their com
mercial interests to prevent their cooperation in this reform;
and, as a result of collateral investigations of the opium ques
tion in this country, I recommended that the manufacture, sale,
and use of opium in the United States should be more rigorously
controlled by legislation.
Prior to that time and in continuation of the policy of this
Government to secure the cooperation of the interested nations,
the United States proposed an international opium conference
with full powers for the purpose of clothing with the force of
international law the resolutions adopted by the above-men
tioned commission, together with their essential corollaries.
The other powers concerned cordially responded to the pro
posal of this Government, and, I am glad to be able to announce,
representatives of all the powers assembled in conference at
The Hague on the first of this month.
Since the passage of the opium-exclusion act, more than
twenty States have been animated to modify their pharmacy
laws and bring them in accord with the spirit of that act, thus
stamping out, to a measure, the intrastate traffic in opium and
other habit-forming drugs. But, although I have urged on the
Congress the passage of certain measures for Federal control of
the interstate and foreign traffic in these drugs, no action has
yet been taken. In view of the fact that there is now sitting
at The Hague so important a conference, which has under
review the municipal laws of the different nations for the miti
gation of their opium and other allied evils, a conference which
will certainly deal with the international aspects of these evils,
it seems to me most essential that the Congress should take
immediate action on the anti-narcotic legislation to which 1
have already called attention by a special message.

23
BUENOS AIRES CONVENTIONS.
The four important conventions signed at the Fourth Pan
American Conference at Buenos Aires, providing for the regu
lation of trade-marks, patents, and copyrights, and for the arbi
tration of pecuniary claims, have, with the advice and consent
of the Senate, been ratifled on the part of the United States
and the ratiflcations have been deposited with the Government
of the Argentine Republic in accordance with the require
ments of the conventions. I am not advised that similar action
has been taken by any other of the signatory governments.
INTERNATIONAL ABEANGEMENT TO SUPPEESS OBSCENE PUBLICATIONS.
One of the notable advances in international morality accom
plished in recent years was an arrangement entered into on
April 13 of the present year between the United States and
other powers for the repression of the circulation of obscene
publications. FOREIGN TRADE RELATIONS OF THE UNITED STATES.
In my last annual message I referred to the tariff negotia
tions of the Department of State with foreign countries in con
nection with the application, by a series of proclamations, of
the minimum tariff of the United States to importations from
the several countries, and I stated that, in its general operation,
section 2 of the new tariff law had proved a guaranty of con
tinued commercial peace, although there were, unfortunately,
instances where foreign governments dealt arbitrarily with
American interests within their jurisdiction in a manner in
jurious and inequitable. During the past year some instances
of discriminatory treatment have been removed, but I regret
to say that there remain a few cases of differential treatment
adverse to the commerce of the United States. While none of
these instances now appears to amount to undue discrimina
tion in the sense of section 2 of the tariff law of August 5,
1909, they are all exceptions to that complete degree of equal
ity of tariff treatment that the Department of State has con
sistently sought to obtain for American commerce abroad.
While the double tariff feature of the tariff" law of 1909 has
been amply justifled by the results achieved in removing former

24
and preventing new, undue discriminations against American
commerce, it is believed that the time has come for the amend
ment of this feature of the law in such way as to provide a
graduated means of meeting varying degrees of discriminatory
treatment of American commerce in foreign countries as well
as to protect the flnancial interests abroad of American citizens
against arbitrary and injurious treatment on the part of for
eign Governments through either legislative or administrative
measures. It would also seem desirable that the maximum tariff of the
United States should embrace within its purview the free list,
which is not the case at the present time, in order that it might
have reasonable signiflcance to the governments of those coun
tries from which the importations into the United States are
confined virtually to articles on the free list.
RECORD OF HIGHEST AMOUNT OP FOREIGN TRADE.
The fiscal year ended June 30, 1911, shows great progress in the
development of American trade. It was noteworthy as mark
ing the highest record of exports of American products to for
eign countries, the valuation being in excess of $2,000,000,000.
These exports showed a gain over the preceding year of more
than $300,000,000.
FACILITIES FOR FOREIGN TRADE FUENISHED BY JOINT ACTION OF DEPARTMENT OF
STATE AND OF COMMEECE AND LABOE.
There is widespread appreciation expressed by the business
interests of the country as regards the practical value of the
facilities now offered by the Department of State and the De
partment of Commerce and Labor for the furtherance of Amer
ican commerce. Conferences with their officers at Washington
who have an expert knowledge of trade conditions in foreign
countries and with consular officers and commercial agents of
the Department of Commerce and Labor who, while on leave
of absence, visit the principal industrial centers of the United
States, have been found of great value. These trade confer
ences are regarded as a particularly promising method of gov
ernmental aid in foreign trade promotion. The Department of
Commerce and Labor has arranged to give publicity to the

25
expected arrival and the itinerary of consular offlcers and com
mercial agents while on leave in the United States, in order that
trade organizations may arrange for conferences with them.
As I have indicated, it is increasingly clear that to obtain and
maintain that equity and substantial equality of treatment
essential to the flourishing foreign trade, which becomes year
by year more important to the industrial and commercial wel
fare of the United States, we should have a flexibility of tariff
sufficient for the give and take of negotiation by the Department
of State on behalf of our commerce and industry.
CRYING NEED FOE AMEEICAN MEECHANT MAEINE.
I need hardly reiterate the conviction that there should
speedily be built up an American merchant marine. This is
necessary to assure favorable transportation facilities to our
great ocean-borne commerce as well as to supplement the
Navy with an adequate reserve of ships and men. It would
have the economic advantage of keeping at home part of the
vast sums now paid foreign shipping for carrying American
goods. All the great commercial nations pay heavy subsidies
to their merchant marine, so that it is obvious that without
some wise aid from the Congress the United States must lag
behind in the matter of merchant marine in its present anoma
lous position. EXTENSION OF AMEEICAN BANKING TO FOEEIGN COUNTRIES.
Legislation to facilitate the extension of American banks to
foreign countries is another matter in which our foreign trade
needs assistance. CHAMBERS OF FOEEIGN COMMERCE SUGGESTED.
The interests of our foreign commerce are nonpartisan, and
as a factor in prosperity are as broad as the land. In the dis
semination of useful information and in the coordination of
effort certain unofficial associations have done good work
toward the promotion of foreign commerce. It is cause for
regret, however, that the great number of such associations
and the comparative lack of cooperation between them fails

26
to secure an efficiency commensurate with the public interest.
Through the agency of the Department of Commerce and
Labor, and in some cases directly, the Department of State
transmits to reputable business interests information of com
mercial opportunities, supplementing the regular published
consular reports. Some central organization in touch with
associations and chambers of commerce throughout the coun
try and able to keep purely American interests in closer touch
with different phases of commercial affairs woidd, I believe,
be of great value. Such organization might be managed by a
committee composed of a small number of those now actively
carrying on the work of some of the larger associations, and
there might be added to the committee, as members ex officio,
one or two officials of the Department of State and one or two
officials from the Department of Commerce and Labor and
representatives of the appropriate committees of Congress.
The authority and success of such an organization would evi
dently be enhanced if the Congress should see fit to prescribe
its scope and organization through legislation which would
give to it some such official standing as that, for example, of
the National Red Cross.
With these factors and the continuance of the foreign-service
establishment (departmental, diplomatic, and consular) upon
the high plane where it has been placed by the recent reorgani
zation this Government would be abreast of the times in foster
ing the interests of its foreign trade, and the rest must be left to
the energy and enterprise of our business men.
IMPROVEMENT OF THE FOREIGN SERVICE.
The entire foreign-service organization is being improved
and developed with especial regard to the requirements of the
commercial interests of the country. The rapid growth of our
foreign trade makes it of the utmost importance that govern
mental agencies through which that trade is to be aided and
protected should possess a high degree of efficiency. Not only
should the foreign representatives be maintained upon a gen
erous scale in so far as salaries and establishments are con
cerned, but the selection and advancement of officers should be
definitely and permanently regulated by law so that the service

27
shall not fail to attract men of high character and ability. The
experience of the past few years with a partial application of
civil-service rules to the Diplomatic and Consular Service
leaves no doubt in my mind of the wisdom of a wider and more
permanent extension of those principles to both branches of the
foreign service. The men selected for appointment bj"^ means of
the existing executive regulations have been of a far higher
average of intelligence and ability than the men appointed be
fore tlie regulations were promulgated. Moreover, the feeling
that under the existing rules there is reasonable hope for per
manence of tenure during good behavior and for promotion for
meritorious service has served to bring about a zealous activity
in the interests of the country, which never before existed or
could exist. It is my earnest conviction that the enactment into
law of the general principles of the existing regulations can not
fail to effect further improvement in both branches of the for
eign service by providing greater inducement for young men of
character and ability to seek a career abroad in the service of
the Government, and an incentive to those already in the
service lo put forth greater efforts to attain the high standards
which the successful conduct of our international relations and
commerce requires.
I therefore again commend to the favorable action of the
Congress the enactment of a law applying to the diplomatic and
consular service the principles embodied in section 1753 of
the Revised Statutes of the United States, in the civil-service
act of January 16, 1883, and the Executive orders of June 27,
1906, and of November 26, 1909. In its consideration of this
important subject I desire to recall to the attention of the Con
gress the very favorable report made on the Lowden bill for
the improvement of the foreign service by the Foreign Affairs
Committee of the House of Representatives. Available statistics
show the strictness with which the merit system has been ap
plied to the foreign service during recent years and the absolute
nonpartisan selection of consuls and diplomatic-service secreta
ries who indeed far from being selected with any view to politi
cal consideration have actually been chosen to a disproportion
ate extent from States which would have been unrepresented in

28
the foreign service under the system which it is to be hoped is
now permanently obsolete. Some legislation for the perpetua
tion of the present system of examinations and promotions
upon merit and efficiency would be of greatest value to our
commercial and international interests. Wm. H. Taft.
The White House, December 7, 1911.

O