The following are the prominent points which have, in later years, separated the two Governments. Besides a restriction, whereby all importations into her Colonies in American Vessels are confined to our own products carried hence, a restriction to which it does not ap pear that we have ever objected, a leading object on the part of Great Britain has been to prevent us from becoming the carriers of British West India commodities to any other Country than our own. On the part of The United States, it has been contended, 1st. That the subject should be regulated by Treaty Stipulations, in preference to separate Legisla. tion: 2d. That our productions, when imported into the Colonies in question should not be subject to higher duties than the productions of the Mother Country, or of her other Colonial Possessions; and 3d. That our Vessels should be allowed to participate in the circuitous Trade between The United States and the different parts of the British Dominions.

The first point, after having been, for a long time, strenuously insisted upon by Great Britain, was given up by the Act of Parliament of July 1825; all Vessels suffered to trade with the Colonies being permitted to clear from thence with any articles which British Vessels might export, and to proceed to any part of the World, Great Britain and her Dependencies alone excepted. On our part, each of the above points had, in succession, been explicitly abandoned, in Negotiations preceding that of which the result is now announced.

This arrangement secures to The United States every advantage asked by them, and which the state of the Negotiation allowed us to insist upon. The Trade will be placed upon a footing decidedly more favorable to this Country than any on which it ever stood; and our Commerce and Navigation will enjoy, in the Colonial Ports of Great Britain, every privilege allowed to other Nations.

That the prosperity of the Country, so far as it depends on this Trade, will be greatly promoted by the new arrangement, there can be no doubt. Independently of the more obvious advantages of an open and direct intercourse, its establishment will be attended with other consequences of a higher value. That which has been carried on since the mutual interdict, under all the expense and inconvenience unavoidably incident to it, would have been insupportably onerous, had it not been, in a great degree, lightened by concerted evasions in the mode of making the transhipments at what are called the Neutral Ports. These indirections are inconsistent with the dignity of Nations that have so many motives, not only to cherish feelings of mutual friendship, but to maintain such relations as will stimulate their respec tive Citizens and Subjects to efforts of direct, open and honourable competition only; and preserve them from the influence of seductive and vitiating circumstances.

When your preliminary interposition was asked at the close of the

last Session, a Copy of the Instructions under which Mr. McLane has acted, together with the Communications which had at that time passed between him and the British Government, was laid before you. Although there has not been any thing in the acts of the two Governments which requires secrecy, it was thought most proper, in the then state of the Negotiation, to make that communication a confidential one. So soon, however, as the evidence of execution on the part of Great Britain is received, the whole matter shall be laid before you; when it will be seen that the apprehension which appears to have suggested one of the Provisions of the Act past at your last Session, that the restoration of the trade in question might be connected with other subjects, and was sought to be obtained at the sacrifice of the public interest in other particulars, was wholly unfounded; and that the change which has taken place in the views of the British Government has been induced by considerations as honourable to both Parties as, I trust, the result will prove beneficial.

This desirable result was, it will be seen, greatly promoted by the liberal and confiding Provisions of the Act of Congress of the last Session, by which our Ports were, upon the reception and annunciation by the President of the required assurance on the part of Great Britain, forthwith opened to her Vessels, before the arrangement could be carried into effect on her part; pursuing, in this act of prospective legislation, a similar course to that adopted by Great Britain, in abolishing, by her Act of Parliament in 1825, a restriction then existing, and permitting our Vessels to clear from the Colonies, on their return voyages, for any Foreign Country whatever, before British Vessels had been relieved from the restriction imposed by our Law, of returning directly from The United States to the Colonies-a restriction which she required and expected that we should abolish. Upon each occasion, a limited and temporary advantage has been given to the opposite Party, but an advantage of no importance, in comparison with the restoration of mutual confidence and good feelings, and the ultimate establishment of the Trade upon fair principles.

It gives me unfeigned pleasure to assure you that this Negotiation has been, throughout, characterised by the most frank and friendly spirit on the part of Great Britain, and concluded in a manner strongly indicative of a sincere desire to cultivate the best relations with The United States. To reciprocate this disposition to the fullest extent of my ability, is a duty which I shall deem it a privilege to discharge.

Although the result is, itself, the best commentary on the services rendered to his Country by our Minister at the Court of St. James's, it would be doing violence to my feelings were I to dismiss the subject, without expressing the very high sense I entertain of the talent and exertions which have been displayed by him on the occasion.

The injury to the Commerce of The United States resulting from the exclusion of our Vessels from the Black Sea, and the previous footing of mere sufferance upon which even the limited trade enjoyed by us with Turkey has hitherto been placed, have, for a long time, been a source of much solicitude to this Government; and several endeavours have been made to obtain a better state of things. Sensible of the importance of the object, I felt it my duty to leave no proper means unemployed to acquire for our Flag the same privileges that are enjoyed by the principal Powers of Europe. Commissioners were consequently appointed, to open a Negotiation with the Sublime Porte. Not long after the Member of the Commission who went directly from The United States had sailed, the account of the Treaty of Adrianople, by which one of the objects in view was supposed to be secured, reached this Country. The Black Sea was understood to be opened to us. Under the supposition that this was the case, the additional facilities to be derived from the establishment of commercial regulations with the Porte, were deemed of sufficient importance to require a prosecution of the Negotiation as originally contemplated. It was therefore persevered in, and resulted in a Treaty, which will forthwith be laid before the Senate.

By its Provisions, a free passage is secured, without limitation of time, to the Vessels of The United States, to and from the Black Sea, including the navigation thereof, and our trade with Turkey is placed on the footing of the most favoured Nation. The latter is an arrange. ment wholly independent of the Treaty of Adrianople, and the former derives much value, not only from the increased security which, under any circumstances, it would give to the right in question, but from the fact, ascertained in the course of the Negotiation, that, by the construction put upon that Treaty by Turkey, the Article relating to the pas sage of the Bosphorus is confined to Nations having Treaties with the Porte. The most friendly feelings appear to be entertained by the Sultan, and an enlightened disposition is evinced by him to foster the intercourse between the two Countries by the most liberal arrange. ments. This disposition it will be our duty and interest to cherish.

Our relations with Russia are of the most stable character. Respect for that Empire, and confidence in its friendship towards The United States, have been so long entertained on our part, and so carefully cherished by the present Emperor and his illustrious Predecessor, as to have become incorporated with the public sentiment of The United States. No means will be left unemployed, on my part, to promote these salutary feelings, and those improvements of which the Commercial Intercourse between the two Countries is susceptible, and which have derived increased importance from our Treaty with the Sublime Porte

I sincerely regret to inform you that our Minister lately commis

sioned to that Court, on whose distinguished talents and great experience in public affairs I place great reliance, has been compelled by extreme indisposition to exercise a privilege, which, in consideration of the extent to which his constitution had been impaired in the public service, was committed to his discretion, of leaving temporarily his post for the advantage of a more genial climate.

If, as it is to be hoped, the improvement of his health should be such as to justify him in doing so, he will repair to St. Petersburgh, and resume the discharge of his official duties. I have received the most satisfactory assurance that, in the mean time, the public interests in that quarter will be preserved from prejudice, by the intercourse which he will continue, through the Secretary of Legation, with the Russian Cabinet.

You are apprized, although the fact has not yet been officially announced to the House of Representatives, that a Treaty was, in the month of March last, concluded between The United States and Denmark, by which 650,000 dollars are secured to our Citizens, as an indemnity for spoliations upon their commerce, in the years 1808, 1809, 1810, and 1811. This Treaty was sanctioned by the Senate at the close of its last Session, and it now becomes the duty of Congress to pass the necessary Laws, for the organization of the Board of Commissioners to distribute the indemnity amongst the Claimants. It is an agreeable circumstance in this adjustment, that its terms are in conformity with the previously ascertained views of the Claimants themselves; thus removing all pretence for a future agitation of the subject in any form.

The Negotiations in regard to such points in our foreign relations as remain to be adjusted, have been actively prosecuted during the recess. Material advances have been made, which are of a character to promise favourable results. Our Country, by the blessing of God, is not in a situation to invite aggression; and it will be our fault if she ever becomes so. Sincerely desirous to cultivate the most liberal and friendly relations with all; ever ready to fulfil our engagements with scrupulous fidelity; limiting our demands upon others to mere justice; holding ourselves ever ready to do unto them as we would wish to be done by; and avoiding even the appearance of undue partiality to any Nation, it appears to me impossible that a simple and sincere application of our principles to our foreign relations can fail to place them ultimately upon the footing on which it is our wish they should

rest.

Of the points referred to, the most prominent are, our Claims upon France, for spoliations upon our Commerce; similar Claims upon Spain, together with the embarrassments in the Commercial Intercourse between the two Countries, which ought to be removed; the conclusion of the Treaty of Commerce and Navigation with Mexico,

which has been so long in suspense, as well as the final settlement of Limits between ourselves and that Republic; and finally, the arbitrament of the question between The United States and Great Britain in regard to the Northeastern Boundary.

The Negotiation with France has been conducted by our Minister with zeal and ability, and in all respects to my entire satisfaction.— Although the prospect of a favourable termination was occasionally dimmed by counter-pretensions, to which The United States could not assent, yet he had strong hopes of being able to arrive at a satisfactory settlement with the late Government. The Negotiation has been renewed with the present Authorities; and, sensible of the general and lively confidence of our Citizens in the justice and magnanimity of regenerated France, I regret the more not to have it in my power yet to announce the results so confidently anticipated. No ground, however, inconsistent with this expectation, has been taken; and I do not allow myself to doubt that justice will soon be done to us. The amount of the Claims, the length of time they have remained unsatisfied, and their incontrovertible justice, make an earnest prosecution of them by this Government an urgent duty. The illegality of the seizures and confiscations out of which they have arisen is not disputed; and whatever distinctions may have heretofore been set up, with regard to the liability of the existing Government, it is quite clear that such considerations cannot now be interposed.

The Commercial Intercourse between the two Countries is sus ceptible of highly advantageous improvements; but the sense of this injury has had, and must continue to have, a very unfavourable influence upon them. From its satisfactory adjustment, not only a firm and cordial friendship, but a progressive developement of all their relations, may be expected. It is therefore, my earnest hope, that this old and vexatious subject of difference may be speedily removed.

I feel that my confidence in our appeal to the motives which should govern a just and magnanimous Nation, is alike warranted by the character of the French People, and by the high voucher we possess for the enlarged views and pure integrity of the Monarch who now presides over her Councils; and nothing shall be wanting on my part to meet the manifestation of the spirit we anticipate, in one of corresponding frankness and liberality.

The subjects of difference with Spain have been brought to the view of that Government by our Minister there, with much force and propriety; and the strongest assurances have been received of their early and favourable consideration.

The steps which remained to place the matter in controversy between Great Britain and The United States fairly before the Arbitrator, have all been taken, in the same liberal and friendly spirit which characterised those before announced. Recent events have doubtless