abuse charged by suspending the privilege of free transportation in
bond across the territory of the United States to Mexico failed of good
result, as is stated in Report No. 702 of the House of Representatives,
submitted in the last session, March 11, 1898. As the question is one to
be conveniently met by wise concurrent legislation of the two countries
looking to the protection of the revenues by harmonious measures
operating equally on either side of the boundary, rather than by
conventional arrangements, I suggest that Congress consider the
advisability of authorizing and inviting a conference of representatives
of the Treasury Departments of the United States and Mexico to consider
the subject in all its complex bearings, and make report with pertinent
recommendations to the respective Governments for the information and
consideration of their Congresses.

The Mexican Water Boundary Commission has adjusted all matters
submitted to it to the satisfaction of both Governments save in three
important cases--that of the "Chamizal" at El Paso, Tex., where the two
commissioners failed to agree, and wherein, for this case only, this
Government has proposed to Mexico the addition of a third member; the
proposed elimination of what are known as "Bancos," small isolated
islands formed by the cutting off of bends in the Rio Grande, from
the operation of the treaties of 1884 and 1889, recommended by the
commissioners and approved by this Government, but still under
consideration by Mexico; and the subject of the "Equitable distribution
of the waters of the Rio Grande," for which the commissioners
recommended an international dam and reservoir, approved by Mexico, but
still under consideration by this Government. Pending these questions
it is necessary to extend the life of the commission, which expires
December 23 next.