The outbreak of war between Russia and Turkey, though at one time
attended by grave apprehension as to its effect upon other European
nations, has had no tendency to disturb the amicable relations
existing between the United States and each of the two contending
powers. An attitude of just and impartial neutrality has been
preserved, and I am gratified to state that in the midst of their
hostilities both the Russian and the Turkish Governments have shown an
earnest disposition to adhere to the obligations of all treaties with
the United States and to give due regard to the rights of American
citizens.

By the terms of the treaty defining the rights, immunities, and
privileges of consuls, between Italy and the United States, ratified
in 1868, either Government may, after the lapse of ten years,
terminate the existence of the treaty by giving twelve months' notice
of its intention. The Government of Italy, availing itself of this
faculty, has now given the required notice, and the treaty will
accordingly end on the 17th of September, 1878. It is understood,
however, that the Italian Government wishes to renew it in its general
scope, desiring only certain modifications in some of its articles.
In this disposition I concur, and shall hope that no serious obstacles
may intervene to prevent or delay the negotiation of a satisfactory
treaty.

Numerous questions in regard to passports, naturalization, and
exemption from military service have continued to arise in cases of
emigrants from Germany who have returned to their native country. The
provisions of the treaty of February 22, 1868, however, have proved to
be so ample and so judicious that the legation of the United States at
Berlin has been able to adjust all claims arising under it, not only