The President is inspired by a desire for a peaceable and honorable adjustment of the existing difficulties between an American state and a powerful transatlantic nation, and would be glad to see the reëstablishment of such diplomatic relations between them as would promote that end. I can discover but two equitable solutions to the present controversy. One is the arbitral determination of the rights of the disputants as the respective successors to the historical rights of Holland and Spain over the region in question. The other is to create a new boundary-line in accordance with the dictates of mutual expediency and consideration. The two Governments having so far been unable to agree on a conventional line, the consistent and conspicuous advocacy by the United States and England of the principle of arbitration, and their recourse thereto in settlement of important questions arising between them, makes such a mode of adjustment especially appropriate in the present instance; and this Government will gladly do what it can to further a determination in that sense. In another despatch to Mr. Bayard, dated December 1, 1894, Mr. Gresham says: I cannot believe Her Majesty’s Government will maintain that the validity of their claim to territory long in dispute between the two countries shall be conceded as a condition precedent to the arbitration of the question whether Venezuela is entitled to other territory, which until a recent period was never in doubt. Our interest in the question has repeatedly been shown by our friendly efforts to further a settlement alike honorable to both countries, and the President is pleased to know that Venezuela will soon renew her efforts to bring about such an adjustment. Two days afterward, on December 3, 1894, the President’s annual message was sent to the Congress, containing the following reference to the controversy: The boundary of British Guiana still remains in dispute between Great Britain and Venezuela. Believing that its early settlement on some just basis alike honorable to both parties is in the line of our established policy to remove from this hemisphere all causes of difference with powers beyond the sea, I shall renew the efforts heretofore made to bring about a restoration of diplomatic relations between the disputants and to induce a reference to arbitration--a resort which Great Britain so conspicuously favors in principle and respects in practice, and which is earnestly sought by her weaker adversary. On the twenty-second day of February, 1895, a joint resolution was passed by the Congress, earnestly recommending to both parties in interest the President’s suggestion “that Great Britain and Venezuela refer their dispute as to boundaries to friendly arbitration.”