With the gradual recovery of Peru from the effects of her late
disastrous conflict with Chile, and with the restoration of civil
authority in that distracted country, it is hoped that pending war
claims of our citizens will be adjusted.

In conformity with notification given by the Government of Peru, the
existing treaties of commerce and extradition between the United States
and that country will terminate March 31, 1886.

Our good relationship with Russia continues.

An officer of the Navy, detailed for the purpose, is now on his way to
Siberia bearing the testimonials voted by Congress to those who
generously succored the survivors of the unfortunate _Jeannette_
expedition.

It is gratifying to advert to the cordiality of our intercourse with
Spain.

The long-pending claim of the owners of the ship _Masonic_ for loss
suffered through the admitted dereliction of the Spanish authorities in
the Philippine Islands has been adjusted by arbitration and an indemnity
awarded. The principle of arbitration in such cases, to which the United
States have long and consistently adhered, thus receives a fresh and
gratifying confirmation.

Other questions with Spain have been disposed of or are under diplomatic
consideration with a view to just and honorable settlement.

The operation of the commercial agreement with Spain of January