“The long-deferred Avis Island claim has been satisfactorily paid and discharged. Mutual payments have been made of the claims awarded by the late Joint Commission for the settlement of claims between the United States and Peru. An earnest and candid friendship continues to exist between the two countries; and such efforts as were in my power have been used to prevent misunderstanding, and avert a threatened war between Peru and Spain. “Our relations are of the most friendly nature with Chili, the Argentine Republic, Bolivia, Costa Rica, Paraguay, San Salvador, and Hayti. During the past year, no differences of any kind have arisen with any of these Republics. And, on the other hand, their sympathies with the United States are constantly expressed with cordiality and earnestness. “The claims arising from the seizure of the cargo of the brig Macedonian, in 1821, have been paid in full by the Government of Chili. “Civil war continues in the Spanish port of San Domingo, apparently without prospect of an early close. “Official correspondence has been freely opened with Liberia, and it gives us a pleasing view of social and political progress in that Republic. It may be expected to derive new vigor from American influence, improved by the rapid disappearance of slavery in the United States. “I solicit your authority to promise to the Republic a gunboat, at a moderate cost, to be reimbursed to the United States by instalments. Such a vessel is needed for the safety of that State against the native African races, and in Liberian hands it would be more effective in arresting the African slave-trade than a squadron in our own hands. “The possession of the least authorized naval force would stimulate a generous ambition in the Republic, and the confidence which we should manifest by furnishing it would win forbearance and favor toward the colony from all civilized nations. The proposed overland telegraph between America and Europe by the way of Behring Strait and Asiatic Russia, which was sanctioned by Congress at the last session, has been undertaken under very favorable circumstances by an association of American citizens, with the cordial good will and support as well of this Government as of those of Great Britain and Russia. “Assurances have been received from most of the South American States of their high appreciation of the enterprise and their readiness to coöperate in constructing lines tributary to that world-encircling communication. “I learn with much satisfaction that the noble design of a telegraphic communication between the eastern coast of America and Great Britain has been renewed with full expectation of its early accomplishment.