Our diplomatic relations with foreign powers have undergone no essential
change since the adjournment of the last Congress. With some of them
questions of a disturbing character are still pending, but there are
good reasons to believe that these may all be amicably adjusted.

For some years past Great Britain has so construed the first article of
the convention of the 20th of April, 1818, in regard to the fisheries
on the northeastern coast, as to exclude our citizens from some of the
fishing grounds to which they freely resorted for nearly a quarter of a
century subsequent to the date of that treaty. The United States have
never acquiesced in this construction, but have always claimed for
their fishermen all the rights which they had so long enjoyed without
molestation. With a view to remove all difficulties on the subject,
to extend the rights of our fishermen beyond the limits fixed by the
convention of 1818, and to regulate trade between the United States and
the British North American Provinces, a negotiation has been opened with
a fair prospect of a favorable result. To protect our fishermen in the
enjoyment of their rights and prevent collision between them and British
fishermen, I deemed it expedient to station a naval force in that
quarter during the fishing season.

Embarrassing questions have also arisen between the two Governments in
regard to Central America. Great Britain has proposed to settle them by
an amicable arrangement, and our minister at London is instructed to
enter into negotiations on that subject.

A commission for adjusting the claims of our citizens against Great
Britain and those of British subjects against the United States,
organized under the convention of the 8th of February last, is now
sitting in London for the transaction of business.