Our relations with foreign governments are upon the whole in a
satisfactory condition.

The diplomatic difficulties which existed between the Government of the
United States and that of Great Britain at the adjournment of the last
Congress have been happily terminated by the appointment of a British
minister to this country, who has been cordially received.

Whilst it is greatly to the interest, as I am convinced it is the
sincere desire, of the Governments and people of the two countries to
be on terms of intimate friendship with each other, it has been our
misfortune almost always to have had some irritating, if not dangerous,
outstanding question with Great Britain.

Since the origin of the Government we have been employed in negotiating
treaties with that power, and afterwards in discussing their true intent
and meaning. In this respect the convention of April 19, 1850, commonly
called the Clayton and Bulwer treaty, has been the most unfortunate
of all, because the two Governments place directly opposite and
contradictory constructions upon its first and most important article.
Whilst in the United States we believed that this treaty would place
both powers upon an exact equality by the stipulation that neither will
ever "occupy, or fortify, or colonize, or assume, or exercise any
dominion" over any part of Central America, it is contended by the
British Government that the true construction of this language has left
them in the rightful possession of all that portion of Central America
which was in their occupancy at the date of the treaty; in fact, that
the treaty is a virtual recognition on the part of the United States of
the right of Great Britain, either as owner or protector, to the whole