speedy and direct adjustment by the two sovereign States in interest as
shall comport with equity and honor. It is gratifying to learn that the
apprehensions at first displayed on the part of Japan lest the cessation
of Hawaii's national life through annexation might impair privileges to
which Japan honorably laid claim, have given place to confidence in the
uprightness of this Government, and in the sincerity of its purpose to
deal with all possible ulterior questions in the broadest spirit of
friendliness.

As to the representation of this Government to Nicaragua, Salvador, and
Costa Rica, I have concluded that Mr. William L. Merry, confirmed as
minister of the United States to the States of Nicaragua, Salvador and
Costa Rica, shall proceed to San José, Costa Rica, and there temporarily
establish the headquarters of the United States to those three States.
I took this action for what I regarded as the paramount interests of
this country. It was developed upon an investigation by the Secretary of
State that the Government of Nicaragua, while not unwilling to receive
Mr. Merry in his diplomatic quality, was unable to do so because of the
compact concluded June 20, 1895, whereby that Republic and those of
Salvador and Honduras, forming what is known as the Greater Republic of
Central America, had surrendered to the representative Diet thereof
their right to receive and send diplomatic agents. The Diet was not
willing to accept him because he was not accredited to that body. I
could not accredit him to that body because the appropriation law of
Congress did not permit it. Mr. Baker, the present minister at Managua,
has been directed to present his letters of recall.

Mr. W. Godfrey Hunter has likewise been accredited to the Governments
of Guatemala and Honduras, the same as his predecessor. Guatemala is not
a member of the Greater Republic of Central America, but Honduras is.