| Show J r r f JUtBITRATlOU -- TAKES PLACE T OF CONFLICT Powers Won - Over to Ways of Peace TAFT SEES GREAT PROGRESS Discusses Special Message Year’s Intercourse With Other Countries REVIEWS MEXICAN CIVIL WAR Mobilization of American Troops on Southern Border Explained — For elgn Trade Relatione— Need For American Merchant Marine that the Domtntca® republic and iHsJta were about to vnter upon (hostilities because eft oompMcadcms 'growing out of an acrimonious 'dispute boundary which the efforts of many years had failed to Bolve The government of the United States by a friendly interposition of good offices succeeded in prevailing uopn tne parties to place their reliance upon some form of pacific settlement 'Accordingly on the friendly suggestion of this government the two governments empowered commissioners to meet at Washat the state deington In conference the partment In order to arrange terms of submission to arbitration of the boundary controversy Chamlzal Arbitration Not Satisfactory Our arbitration of the Chamlzal with Mexico was boundary question unfortunately abortive but with the earnest efforts on the part of both which its importance governments commands It Is felt that an early practical adjustment should prove possible Mexico The recent political events in Mexico received attention from this government because of the exceedingly delicate and difficult situation created along our southern border and the necessity for taking measures properly to safeguard American Interests The of the United States in government its desire to secure a proper observance and enforcement of the neutrality statutes of the federal government Issued directions to the appropriate officers to exercise a diligent and vigilant regard for the requirements of such rules and laws Al- of actual armed though a condition there was no official Dec 7 — President Tatt conflict existed Washington of belligerency Involving recognition today sent to congress a special mesThe mes- the technical neutrality obligations of sage on foreign relations International law sage follows: The relations of the United States On the 6th of March last In the abwith other countries have continued sence of the secretary of state I had during the past twelve 'months upon a a personal interview with Mr Wilson basis of the usual good will and the ambassador of the United States friendly Intercourse tq Mexico In which be reported to me that the conditions in Mexico were Arbitration disThe year Just passed marks an lm much more critical than the press disclosed that President Diaz portant general movement on the part patches was on a volcano of popular uprising of the powers for broader arbitration which small that had the outbreaks In the recognition of the manifold occurred of were only symptomatic benefits to maklnd in the extension of that a very large the policy of the settlement of Inter- the whole ofcondition the people were In symnational disputes by arbitration rather per cent that a than by war and In response to a pathy with the Insurrection was probable at any demand for an advance In general explosion widespread In which case be feared that the that direction on the part of the peo time 440000 or more American residents In pie of the United States and of Great Mexico might be assailed and that Britain and of France new arbitration Investments treaties were negotiated last spring the verybe large American Injured or destroyed with Great Britain and France the might After a conference with the secreterms of which were designed as exof these tary of war and the secretary of the pressed In the preamble treaties to extend the scope and obli- nary I thought It wlBe to assemble an gations of the policy of arbitration army division of full strength at San Tex a brigade of three regiadopted In our present treaties with Antonio a brigade of Inthose governments To pave the way ments at Galveston for this treaty with the United States fantry in the Los Angeles district of together with a eatJBrltaln negotiated an Important Southern California of battleships and cruisers modification in Its alliance with Japan squadron and a also ex- and transports at Galveston and the French government signal small squadron of ships at San Diego pedited the negotiations with our repregood will The new treaties have been At the same time through submitted to the senate and are sentative at the City of Mexico I exconsent to pressed to President Diaz the hope awaiting its advice and their ratification All the essentials that no apprehensions might result as to unfounded conjectures of these Important treaties have long from been known and It Is my earnest these military maneuvers and assured him that they had no signifihope that they will receive prompt cance which should cause concern to action' and favorable his government Claim of Alsop & Co Settled was effected with The mobilization I am glad to report that on July 6 great promptness and on the 15th of & of Alsop last the American claim March through the secretary of war of Chile Co against the government and of the the navy In a letsecretary was finally disposed of by the decision ter addressed to the chief of staff I of his Britannic majesty George V to whom' as amiable compositeur the Issued the following Instructions: "It seems my duty as’ commander matter had been referred for deteran In chief to place troops In sufficient made mination His majesty where if Congress shall diaward of nearly fl 000 000 to the number which was promptly claimants paid rect that they enter Mexico to save The settlement of this con- American lives and property an efby Chile movement may be promptly from fective troversy has happily eliminated the relations betwen the republic of made Meantime the movement of the Chile and the United States the only troops to Texas and elsewhere near with sinaccompanied question which for two decades had the boundary of the utmost goodgiven the two foreign offices any seri- cere assurances ous concern and makes possible the will toward the present Mexican govand more and ernment with of the relalarger unobstructed development tions of friendship which it has been frequent patrols along the border to the aim of this government In every prevent Insurrectionary expeditions soil will hold up the possible way to further and cultivate from American hands of the existing government and Arbitrations In further illustration of the practi- will have a healthy moral effect to preAmericans and of the vent attacks upon cal and beneficent application In any subsequent genprinciple of arbitration and the under- their property the Again I am eral internecine strife lying broad spirit of conciliation of a division of mobilization sudden to of to the the advert happy part troops has been a great1 test of our United States in facilitating amicable useful full of and Instruction settlement of disputes which menaced army the peace between Panama and Costa while the maneuvers that are thus Rica and between Haiti and the Do- made possible can occupy the troops and their officers to great advantage minican republic "The assumption by the press that Since the date of their IndependIntervention on Mexican Rica had I contemplate ence Colombia and Costa soil to protect American lives or propbeen seeking a solution of a boundary which came as a heritage erty is of course gratuitous because I dispute doubt whether I have such from Colombia to the new republic of seriously Panama upon Its beginning life as an authority under any circumstances nation Although the dis- and If I had I would not exercise it Independent apexpress congressional this question without putants bad submitted My determined purpose howto the president of proval for decision ever Is to be In a position so that France under the terms of an arbitrawhen danger to American lives and tion treaty the exact interpretation renproperty In Mexico threatens and the of the provisions of the award existing government is rendered helpdered had been a matter of serious by the Insurrection I can promptdisagreement between the two coun- lessexecute congressional orders to for widely dif- ly tries both contending ferent lines even under the terms of protect them with effect I send you this letter "Meantime and since the decision Subsequently the secretary to call your 1903 this boundary question had been through neattention to some things in connection the subject of fruitless diplomatic between the parties in with the presence of the division In gotiations 1910 at the request of both the southwest which have doubtless January the agents representing occurred to you but which I wish to governments them met in conference at the depart- emphasize con“In the first place I want to make ment of state and subsequently cluded a protocol submitting this the mobilization a training controversy to the arbitral for the army and I wish you would chief of the of Justice the Judgment give your time and that of the war United States who consented to act college to advising and carrying out In this capacity A boundary commis- maneuvers of a useful character and sion according to the International plan to continue to do this during the next three months By that time we has now been appointed agreement and It Is expected that the arguments may expect that either Ambassador Wilson's fears will have been realized will shortly proceed and that this longand chaos and its consequences have standing dispute will be honorably or that the present governensued and satisfactorily terminated1 ment of Mexico will have so read Again a few months ago it appeared justed matters m to secure tranquillity The —a result devoutly to be wished troops can then be returned to their posts "Second Texas Is a state ordinarily but you can not put 20000 peaceful troops Into It without running some risk of a collision between the peothe ple of the state - and especially Mexicans who live In Texas near the border and who sympathize with the federal soldiers Insurreotos the anti For that reason J beg you to be as careful as you can to prevent frlotlon of any kind "Third One of the great troubles In the concentration of troops Is the danger of disease and I suppose that you have adopted the most modern and if methods for the preventing for stamping out epidemics necessary That Is so much a part of a camseems necessary paign that It hardly for me to call attention to it “Finally I wish you to examine the question of the patrol of the border and put as many troops on that work as is practicable and more than are now engaged in it In order to prevent for the the use of our borderland carrying on of the insurrection I have given assurances to the Mexican amon bassador this point “I sincerely hope that this (experience will always be remembered by the army and navy as a useful means of education and I should be greatly Inin if it resulted disappointed any jury or disaster to our forces from any cause I have taken a good deal of in ordering this mobilresponsibility ization but I am ready to answer for It if only you and those under you use the utmost care to avoid the difficulties which I have pointed out" I am more than happy to here record the fact that all apprehensions as to the effect of the presence of so large a military force In Texas proved 'occurred no disturbances groundless From time to time communications were received from Ambassador Wilfeturned son who had to Mexico confirming the view that the massing of American troops in the neighborhood had had good effect The Insurrection continued and rethe sulted In engagements between regular Mexican troops and the Insurgents and this along the border so that in several Instances bullets from the contending forces struck American citizens engaged in their lawful occupations on American soil Proper protests were made against these Invasions of American rights to the Mexican authorities The presence of a large military and naval force available for prompt action near the Mexican border proved to be most fortunate under the somewhat trying conditions presented by this invasion of American rights Had no movement theretofore taken place and because of these events it had been necessary then to brin about the mobilization lt't(lTlst"bv On the had sinister significance other hand the presence of the troops before and at the time of the unfortunate killing and wounding of American citizens at Douglas made clear that the restraint exercised by our In regard to this occurgovernment rence was not due to a lack of force or power to deal with It promptly and but was due to a real aggressively desire to use every means possible to In the afavoid direct Intervention fairs of our neighbor whose friendship we valued and were most anxious to retain The policy and action of this government were based upon an earnest friendliness for the Mexican people as a whole and it Is a matter of to note that this attitude gratification of strict Impartiality as to all factions In Mexico and of sincere friendship for the neighboring nation withhas out regard for party allegiance been generally recognized and has resulted In an even closer and more between sympathetic understanding the two republics and a warmer reAction to gard one for the other violence and restore transuppress quility throughout the Mexican republic was of peculiar Interest to this In that It concerned the gdvernment of American life and safeguarding On May 25 property In that country Senor 1911 President Diaz resigned de la Barra was chosen provisional Elections for president president were thereafter and and held throughout the republic Senor Francisco I Madero was forelected on October 15 mally declared to the chief magistracy On November 6 President Madero entered upon the duties of his office and Nicaragua Proposed In As to the situation Central America I have taken occasion In the past to emphasize most strongly the should be attributed Importance that to the consummation of the conventions between the Republics of Nicaand this ragua and of Honduras country and I again earnestly recommend that the necessary advice and consent of the senate be accorded to these treaties which will make It posresible for these Central American publics to enter upon an era of genuine economic national development with the Our relations Republic of Panama peculiarly Important due to mutual obligations and the vast terests created by the canal have continued In the usual friendly manner and we have been glad to make appropriate expression of our attitude of sympathetic Interest In the endeavors of our neighbor In undertakithe development of the rich reng! sources of the country The Chinese Loans The past year has been marked In our relations with China by the conclusion of two Important Intematlon-a- l of loahs one for the construction the Hukuang railways the other for the carrying out of the currency re- t to which China was pledged by with the United States Great and Japan menof which tion was jn my iaat annual message Knowing the Interest of the United States In the reform of Chinese currency the Chinese government In the autumn of 1910 sought the assistance of the American government to procure funds with which to accomplish that reform In the course of the subsequent negotiations there was combined with the proposed currency loan one for certain industrial developments In Manchuria the two loans aggregating the sum of 150000000 While this was originally to be solely an American enterprise the American' government consistently with Its- desire to secure a sympathetic and practical of the great powers toward maintaining the principle of equality of opportunity and the administrative Integrity of China urged the Chinese government to fcdmlt to participation In the currency loan the associates of the American group In the loan While of Immense Importance In Itself the reform contemplated In making this loan Is but preliminary to other and more comprehensive fiscal reforms which will be of Incalculable benefit to China and foreign Interests alike since they will strengthen the Chinese empire and promote the rapid development of International trade When these negotiations were begun It was understood that a financial adviser was to be employed by China In connection with the reform and In order that absolute equality In all respects among the lending nations might be scrupulously observed the American government the proposed nomination of a neutral adviser which was agreed to by China and the other governments concerned On September 28 1911 Doctor Vlsserlng president of the Dutch Java bank and a financier of wide experience In the Orient was recommended to the Chinese government for the post of monetary adviser 1° treaties Britain Especially important at the present when the ancient Chinese empire Is shaken by civil war Incidental to Its awakening to the many Influences and activity of modernization are the cooperative policy of good understanding which has been fostered by the International projects referred to above and the general sympathy of view among all the powers Interested In the far east New Japanese Treaty The treaty of commerce and navigation between the United States and would Japan signed In 1894 by a strict interpretation of its provisions have terminated on July 17 1912 Japan’s general treaties with the other terminated In 1911 powers however the Japanese government ex- pressed aij— e'ynest desire to conduct for a new treaty with the the United! States simultaneously with its negotiations with the other powers There were a number of importhe in tant questions involved treaty Including the immigration of laborers revision of the customs tariff and the right of Americans to hold real estate 4n Japan The United States consented to waive all technicalities and to enter at once upon nefor a new treaty on the ungotiations derstanding that there should be a continuance the life of the throughout treaty of the same effective measures of for the restriction of Immigration laborers to American territory which bad been in operation with entire satisfaction to both governments since negrf)ns The Japanese government acthis basis of negotiation and treaty was quickly concluded resulting in a highly satisfactory settlement of the other questions referred to A satisfactory adjustment has also ben effected of the question growing out of the annexation of Korea by Japan Europe and the Near East In Europe and the near east during the past there has been at times considerable political unrest 1908 cepted a new for the establishHague convention ment of an International prize court mentioned In my last annual message embodying stipulations providing for an alternative procedure which would remove the constitutional objection to that part of The Hague convention which provides that there may be an appeal to the proposed court from the decisions has reof national courts ceived the signature of the governments parties to the original convention and has been ratified by the government of the United States together with the prize court convention The deposit of the ratifications with the government of the Netherlands awaits action by the powers on the declaration signed at London on February 2G 1909 of the rules of international law to be recognized within the meaning of article seven of The Hague of an convention for the establishment International prize court Treaty The which for controversy nearly twenty-fivyears has been the source of serious friction between the United States and the powers borderocean ing upon the north Pacific whose subjects have been permitted to engage in pelagic sealing against the herds having their breeding grounds within the Jurisdiction of the United States has at last been satisfactorily adjusted by the conclusion of the North Pacific sealing convention entered Into between the United States Great Britain Japan and Russia on the seventh of July last This Is a conservation convention measure of very great importance and If it is carried out In the spirit of reciprocal concession and advantage upon which It is based there Is every reason to believe that not only will it result In prel herds of the north serving the Pacific ocean and restoring them to their former value for the purposes of commerce but also that It will afford a permanently satisfactory settlement of a question the only other solution of which seemed to be the total destruction of the fur seals In another aspect also this convention is of Importance In that It furnishes an Illustration of the feasibility of securing a general International game law for the of other mammals of the protection sea the preservation of which Is of to all the nations of the Importance world The attention of congress Is especll-lcalled to the necessity for legislation on the part of the United States for the purpose of fulfilling the obligations assumed under this convention to which the senate gave Its advice and consent on the day ' ' of July ast International Opium Commission In a special message transmitted to congress on the seventh of JanuI concurred In 1911 which In the ary recommendations made by the secretary of state in regard to certain needful legislation for the control of our interstate and foreign traffic In opium I and other menacing drugs quoted from my annual message of December 7 1909 In which I announced that the results of the International Opium commission held at Shanghai In February 1909 at the Invitation of the United States had been laid before-thithat the report of government that commission showed that China was making remarkable progress and admirable efforts toward the eradlca tlon of the opium evil that the interhad not permitted ested governments their commercial Interests to prevent In this reform and their as a result of collateral Investigations of the opium question In this country I recommended that the manufacture sale and use of opium In the United States should be more rigorously controlled by legislation Prior to that time and In continuation of the policy of this government of the interto secure the ested nations the United States proopium conferposed an International for the purpose ence with full powers of clothing with the force of international law the resolutions adopted by tocommission the gether with their essential corollaries concerned The other powers cordially responded to the proposal of this government and I am glad to be able to announce representatives of all the In conference at powers assembled The Hague on the first of this month Since the passage of the act more than twenty states to modify their have been animated pharmacy laws and bring them in accord with the spirit of that act thus out to a measure the instamping trastate traffic in opium and other But although I drugs have urged on the congress the passfor federal age of certain measures control of the Interstate and foreign traffic In these drugs no action has In view of the fact yet been taken that there Is now sitting at The Hague a conference whch has so Important under review the municipal laws' of the different nations for the mitigation of their opium and other allied evils a which will certainly deal conference with the International aspects of these “evils It seems to me most essential that the congress should take immediate action on the legislation to which I have already called attention by a special message Foreigk Trade Relations of the United the The Moroccan for which question some months was the cause of great anxiety happily appears to have reached a stage at which It need no The longer be regarded with concern Ottoman empire was occupied for a period by strife In Albania and Is now at war with Italy In Greece and the Balkan countries the disquieting potentialities of this situation have been more or less felt Persia has been the scene of a long Internal struggle These conditions have been the cause of uneasiness In European diplomacy but thus far without direct political concern to the United States In the war which unhappily exists between Italy and Turkey this government has no direct political Interest and I took occasion at the suitaof ble time to issue a proplamation At the neutrality in that conflict same time all necessary steps have been taken to safeguard the personal Interests of American citizens and organizations In so far as affected by the war In spite of the attendant economic uncertainties and detriments to commerce the United States has gained States In Its commercial markedly standing with certain of the nations of the In my last annual message I reis be- ferred to the tariff negotiations of the near east especially Turkey ginning to come Into closer relations department of state with foreign counwith the United States through the tries In connection with the applicanew Interest of American manufacturof tion by a series of proclamations tariff of the United ers and exporters in the possibilities the minimum from the sevof those regions and it Is hoped that States to Importations foundations are being laid for a large eral countries and I stated that in its 2 of section and mutually beneficial the of general operation exchange new tariff law had proved a guaranty commodities between the two counalcommercial peace of continued tries inInternational Conventions and Confer- though there were unfortunately stances where foreign governments ences to The dealt arbitrarily with American Inter- The supplementary protocol J 1 V ujrt In ests within their Jurisdiction manner injurious and Inequitable During the past year some Instances of discriminatory treatment have been removed but I regret to say that there remain a few cases of adverse to the commerce of While none of the United States these Instances now appears to amount In the sense to undue discrimination of section 2 of the tariff law of August 6 1909 they are all exceptions to that of complete degree equality of tariff treatment that the department of state has consistently sought to obtain for American commerce abroad While the double tariff feature of the tariff law of 1909 has been amply Justified by the results achieved In renew moving fqrmer and preventing undue discriminations Ameriagainst can commerce It Is believed that baa come for the amendment of this feature of the law In Buch way as to provide a graduated means of meeting varying degrees of discriminatory treatment of American commerce la foreign countries as well as to protect the financial Interests abroad of American citizens against arbitrary and Injurious treatment on the part either’ foreign governments through or measures administrative legislative of It would also seem the maximum tariff desirable that of the should embrace within its purview the free list which Is not tbw case at the present time In order that it might have reasonable significance to the governments of those countries from which the importations into the United States are confined virtually Us ' articles on the free list The fiscal year ended June 30 In the developgreat progress ment of American trade It was noteworthy as marking the highest record of exports of American products to foreign countries the valuation being in excess of $2000000000 These exports showed a gain over the preceding year of more than $300000000 There Is widespread appreciation expressed by the business Interests of' the country as regards the practical value of the facilities now offered by th department of state and the department of commerce and labor furtherance of American Need for American Merchant Marine need hardly reiterate the conviction that there should speedily be built up an American merchant maThis is necessary to assure farine vorable transportation facilities to our' commerce as well great as to supplement the navy with ao adequate reserve of ships and men It would have the economic advantage of keeping at home part of the vast sums now paid foreign shipping for All th carrying American goods nations pay great commercial heavy subsidies to their merchant marine so that It Is obvious that without some wise aid from the Congress the United States must lag behind In the matter of merchant marine In Its present anomalous position Crying I to facilitate the externLegislation slon of American banks to foreign countries la another matter in which our foreign trade needs assistance ' of the Foreign Service Improvement The entire organization Is being improved and developed with especial regard to the requirements of the commercial Interests of the country The rapid growth of onr foreign trade makes It of the utmost that governmental agenImportance cies through which that trade is to and protected should possess a Not only high degree of efficiency should the foreign representatives be maintained upon a generous scale la so far as salaries and establishment are concerned' but the selection and of officers should be defiadvancement nitely and permanently regulated by law so that the service shall not fail to attract men of high character and The experience of the past ability few years with a partial application or civil service rules to the diplomatic1 and consular service leaves no doubt' In my mind of the wisdom of a wider' and more permanent extension of those principles to both branches of the foreign service The men selected'-foappointment by means of the existing executive regulations have been of a far higher average of intelligence and ability than the men appointed’ before the regulations were promul gated I therefore again commend to the favorable action of the congress of a law applying to and consular service the In Bectlon 1755 embodied principles of the Revised Statutes of the United States In the civil servlceact of January 16 1883 and the executive order 1906 and of November 2L of June of this im1909 In Its consideration portant subject I desire to recall t the attention of the congress the vary favorable report made on the Lowdew bill for the Improvement of the foreign service by the foreign affairs commitof representatives tee of the house Available statistics show the strictness with which the merit system ha foreign service been applied during recent years and the absolute selection of consuls and' who indiplomatic service secretaries deed far from being selected with any have1 view to political consideration actually been chesen to a disproportionate extent from states which would In the forhave been unrepresented eign service under the system whict It is to be hoped is now permanently obsolete Some legislation for the perexpetuation of the present system of aminations and promotions upon merit and efficiency would be of greatest value to our commercial and interna tlonal interests WM H TAFT ‘t- r |
