The importance of the commerce of Cuba and Puerto Rico with the United
States, their nearest and principal market, justifies the expectation
that the existing relations may be beneficially expanded. The
impediments resulting from varying dues on navigation and from the
vexatious treatment of our vessels on merely technical grounds of
complaint in West India ports should be removed.

The progress toward an adjustment of pending claims between the United
States and Spain is not as rapid as could be desired.

Questions affecting American interests in connection with railways
constructed and operated by our citizens in Peru have claimed the
attention of this Government. It is urged that other governments in
pressing Peru to the payment of their claims have disregarded the
property rights of American citizens. The matter will be carefully
investigated with a view to securing a proper and equitable adjustment.

A similar issue is now pending with Portugal. The Delagoa Bay Railway,
in Africa, was constructed under a concession by Portugal to an American
citizen. When nearly completed the road was seized by the agents of the
Portuguese Government. Formal protest has been made through our minister
at Lisbon against this act, and no proper effort will be spared to
secure proper relief.

In pursuance of the charter granted by Congress and under the terms of
its contract with the Government of Nicaragua the Interoceanic Canal
Company has begun the construction of the important waterway between the
two oceans which its organization contemplates. Grave complications for
a time seemed imminent, in view of a supposed conflict of jurisdiction