with a better understanding of the matter this vexatious prohibition
will be removed. It would be pleasing to be able to say as much with
respect to Germany, Austria, and other countries, where such food
products are absolutely excluded, without present prospect of reasonable
change.

The interpretation of our existing treaties of naturalization by Germany
during the past year has attracted attention by reason of an apparent
tendency on the part of the Imperial Government to extend the scope of
the residential restrictions to which returning naturalized citizens of
German origin are asserted to be liable under the laws of the Empire.
The temperate and just attitude taken by this Government with regard to
this class of questions will doubtless lead to a satisfactory
understanding.

The dispute of Germany and Spain relative to the domination of the
Caroline Islands has attracted the attention of this Government by
reason of extensive interests of American citizens having grown up in
those parts during the past thirty years, and because the question of
ownership involves jurisdiction of matters affecting the status of our
citizens under civil and criminal law. While standing wholly aloof from
the proprietary issues raised between powers to both of which the United
States are friendly, this Government expects that nothing in the present
contention shall unfavorably affect our citizens carrying on a peaceful
commerce or there domiciled, and has so informed the Governments of
Spain and Germany.

The marked good will between the United States and Great Britain has
been maintained during the past year.