Rica, which was not a party to the compact, while our other envoy was
similarly accredited to a union State, Honduras, and a nonunion State,
Guatemala. The result has been that the one has presented credentials
only to the President of Costa Rica, the other having been received only
by the Government of Guatemala.

Subsequently the three associated Republics entered into negotiations
for taking the steps forecast in the original compact. A convention of
their delegates framed for them a federal constitution under the name of
the United States of Central America, and provided for a central federal
government and legislature. Upon ratification by the constituent States,
the 1st of November last was fixed for the new system to go into
operation. Within a few weeks thereafter the plan was severely tested
by revolutionary movements arising, with a consequent demand for unity
of action on the part of the military power of the federal States to
suppress them. Under this strain the new union seems to have been
weakened through the withdrawal of its more important members. This
Government was not officially advised of the installation of the
federation and has maintained an attitude of friendly expectancy, while
in no wise relinquishing the position held from the outset that the
responsibilities of the several States toward us remained unaltered by
their tentative relations among themselves.

The Nicaragua Canal Commission, under the chairmanship of Rear-Admiral
John G. Walker, appointed July 24, 1897, under the authority of a
provision in the sundry civil act of June 4 of that year, has nearly
completed its labors, and the results of its exhaustive inquiry into the
proper route, the feasibility, and the cost of construction of an
interoceanic canal by a Nicaraguan route will be laid before you. In the
performance of its task the commission received all possible courtesy