[Extracts from the reports and dispatches of the Central and South American commission.]

MEXICO.

The following is an extract from the commission's report of its conference with President Diaz:

Mr. Commissioner Thacher, thanking the President for his promptness and courtesy in granting personal interviews to the commission, explained that the conferences were to be understood by both participants as informal and preliminary, to the end that the views of the Government of Mexico and our own might be exchanged with greater freedom upon the various topics of international importance which the commission was instructed to present. He recited briefly the purpose of the commission and the objects it desired to accomplish, not only in Mexico, but in Central and South America.

President Diaz replied that the Mexican Government was grateful to the United States for sending the commission to Mexico on such a mission, and said that he sympathized deeply and sincerely with the objects it had in view. No one could recognize more fully than he the fact that close commercial relations always resulted in political sympathy and permanent peace, and it was an act to be commended by the whole hemisphere for the United States, the mother of republics,

to inaugurate a movement in which not only Mexico, but all the republics of Spanish America would commend and join. The purpose of the commission, if accomplished, would, he believed, make peace permanent among all the nations of the western world, and bring to them a fruitful prosperity. Mexico and all the other republics had shown their faith in the political institutions of the United States by imitating its form of government, and still looked to it for encouragement and example.

He desired the commission to assure the President of the United States and the Secretary of State of the high regard he felt for them, and of the admiration in which he and his people held their ability. He begged the commission to say that he reciprocated the interest felt by them in the prosperity of Mexico, and accepted as his own the views expressed by Mr. Frelinghuysen upon the first page of the printed instructions, which were read to him.

Mr. Thacher then read that portion of the message of President Arthur presented to Congress at the opening of the current session, so far as it relates to Mexican affairs, as evidence of the deep interest felt by the Administration in the commission's labors; and asked the views of President Diaz and the Mexican Government on the propositions advanced by President Arthur.

General Diaz replied that he entirely reciprocated the sentiments of the President regarding the immediate renewal of the treaty of commerce, navigation, and consular rights, and was ready at any time to favorably consider it. He said he was not fully aware of the reasons why the treaty had not been renewed before, but he understood it was because of a disagreement upon some of the conditions in the navigation clauses. Señor Romero then explained at length why a renewal had not been agreed upon, and defined the position hitherto assumed by the Mexican Government.

President Diaz remarked that both Governments would doubtless have changes to suggest as to some of the details of the old treaty, but the Mexican Government was willing to consider its renewal and amplification at any time the United States might desire to open negotiations. He anticipated no difficulty in reaching a conclusion mutually satisfactory and beneficial.

Mr. Thacher said the United States felt it a duty to promote intimacy and amity between the two Governments, and should take advantage of every opportunity, and even create opportunities, to secure such intimacy by all legitimate measures. For this reason the commission was directed to approach the Mexican Government, and to ascertain its views, aims, and needs on this subject, and to give the same ample consideration; that the United States desired to effect such intimacy as would exclude the temptation in Mexico of seeking antagonistic alliances, and at the same time avoid embarrassing engagements and guaranties. The United States realized that its moral influence and assurance of good offices to be rendered in time of need would be of great benefit to Mexico, and at the same time our Government would maintain its time-honored doctrine with respect to foreign interference in American affairs; that in giving such assurance, and in accomplishing an international alliance most to be desired, there were two important points to be considered, to wit, a reciprocity of trade advantages and a uniform

currency.

Touching the latter of these considerations, the attention of President Diaz was called to the paragraph in the letter of Mr. Frelinghuysen to the Hon. John F. Miller, chairman of the Senate Committee of Foreign Relations, under date of March 26, 1884, in which the Secretary of State says:

"The United States are great producers of silver, and any market which can be opened for this valuable product is for our advantage. Great Britain, on the other hand, strives to disparage and exclude it as a means of exchange, for its use in this way depreciates her wealth and works to her disadvantage. The States of Central and South America are also silver producers, with interests like our own. It would therefore be of advantage, and probably practicable, to agree upon a common silver coin, equal in value, say, to our gold dollar, or to some other approximate standard, which, under proper regulation as to coinage, etc., should be current in all the countries of this continent. Thus value would be given to our silver product and commerce with those countries would be aided."

President Diaz responded that he heartily concurred in the suggestion of the Secretary of State: that he could readily recognize the usefulness of a common coin which should pass current in all the countries of this hemisphere: that in his belief a currency of this character would facilitate commerce and unquestionably draw together the communities possessing it. Of course the details of such an agreement must be a matter of thoughtful reflection, and he would either instruct the Mexican minister at Washington to negotiate with the Department for the establishment of such a value and the coinage of such a dollar, or, if it were preferred, he would send a special commissioner to Washington to confer with any

one the Department might select. He stated that the commission was at liberty to inform the Governments it might visit that the assent of the Mexican Government had already been given to the proposition.

Mr. Commissioner Thacher, referring again to the recent message of President Arthur, said there was a great anxiety on the part of our Government to see the reciprocity treaty already ratified carried into effect, and that the Congress of the United States had been urged to enact the necessary legislation at once. President Diaz was asked if the Mexican Government might not soon be expected to do its part toward this end.

He replied that he was very much interested in the reciprocity treaty and he believed it would be beneficial to both countries, but he feared that the Mexican Congress would not be able to enact the necessary legislation at the present session, which would expire in a few days. The short time remaining would be fully occupied in the consideration of business of immediate importance, including the passage of several appropriation bills and the settlement of a disputed election in one of the States of the Republic. Congress would meet again, however, in the spring, when he would recommend the immediate consideration of the subject, and had no doubt it would be promptly and favorably acted upon.

The commission stated that, although it was not prepared to conclude negotiations upon any subject, there were several suggestions it desired to make for the purpose of obtaining the views of the Mexican Government in the event that the scope of the pending treaty should be enlarged,

President Diaz replied that he would be glad to receive any suggestions or prop

ositions for immediate or future consideration.

Then, referring to the printed instructions, Mr. Commissioner Thacher suggested that the position of the United States in regard to reciprocity treaties was that they should produce the greatest good to the greatest number of each country and that no concession should be made by one Government without an adequate consideration from the other. He further observed that although many products of Mexico were now admitted free into the United States, yet, except as they were protected by the existing treaties. there could be 1 gislation in our own Congress to restore them to the list of dutiable articles; and the Mexican Government must not assume that because they were free now they would always be so. own legislation regarding such products would be governed largely by the tariff concessions made to the United States by the countries in which they were produced.

Our

Mr. Thacher added that he desired to present for the future consideration of the Mexican Government the practicability of inserting in the treaty of commerce and navigation, when the same was renewed, a clause which he thought would tend to build up a merchant marine for both Republics, to the effect that the stipulated benefits should be enjoyed only when the favored productions should be carried under the flag of one of the nations engaging in the treaty. This end, he thought, might be more certainly and speedily reached if the vessels of either nation, so laden and seeking the ports of the other, were placed on the same footing as domestic vessels engaged in the coasting trade.

To this suggestion President Diaz responded, with a smile, that the advantages of such a treaty would be immediately realized by the nation which happened to have the largest merchant marine, and that it was well known that Mexican vessels were not often seen upon the sea. He was inclined to encourage any proposition that would tend to build up a shipping interest in his country, and perhaps such an arrangement might be beneficial in that direction. He was scarcely prepared, however, to discuss a subject to which he had given no attention.

Mr. Thacher replied that the idea was simply suggested as worthy of contemplation, and asked whether a proposition embracing it would be entertained by the Mexican Government when the renewal of the old treaty was undertaken. President Diaz answered that the suggestion would not only be entertained, but that it would be regarded as one of the greatest importance. He did not wish to dismiss it longer than would be necessary to consult merchants engaged in trade and other experts as to the advantages and disadvantages which might occur from such an engagement. According to the present condition of the shipping of Mexico, the United States would enjoy very great advantages, but he was inclined to think that the measure would be received with some favor by the Mexican Government, as it would at least encourage the building of vessels and the education of seamen in the Republic. Mexico ought to have a merchant marine like that of other nations, and his administration would encourage any measure, even of temporary disadvantage, which would result ultimately in securing such a shipping trade as was to be desired. It occurred to him, however, that some of the treaties already entered into by Mexico might offer difficulties to the consummation of such an arrangement.

to inaugurate a movement in which not only Mexico, but all the republics of Spanish America would commend and join. The purpose of the commission, if accomplished, would, he believed, make peace permanent among all the nations of the western world, and bring to them a fruitful prosperity. Mexico and all the other republics had shown their faith in the political institutions of the United States by imitating its form of government, and still looked to it for encouragement and example.

He desired the commission to assure the President of the United States and the Secretary of State of the high regard he felt for them, and of the admiration in which he and his people held their ability. He begged the commission to say that he reciprocated the interest felt by them in the prosperity of Mexico, and accepted as his own the views expressed by Mr. Frelinghuysen upon the first page of the printed instructions, which were read to him.

Mr. Thacher then read that portion of the message of President Arthur presented to Congress at the opening of the current session, so far as it relates to Mexican affairs, as evidence of the deep interest felt by the Administration in the commission's labors; and asked the views of President Diaz and the Mexican Government on the propositions advanced by President Arthur.

General Diaz replied that he entirely reciprocated the sentiments of the President regarding the immediate renewal of the treaty of commerce, navigation, and consular rights, and was ready at any time to favorably consider it. He said he was not fully aware of the reasons why the treaty had not been renewed before, but he understood it was because of a disagreement upon some of the conditions in the navigation clauses. Señor Romero then explained at length why a renewal had not been agreed upon, and defined the position hitherto assumed by the Mexican Government.

President Diaz remarked that both Governments would doubtless have changes to suggest as to some of the details of the old treaty, but the Mexican Government was willing to consider its renewal and amplification at any time the United States might desire to open negotiations. He anticipated no difficulty in reaching a conclusion mutually satisfactory and beneficial.

Mr. Thacher said the United States felt it a duty to promote intimacy and amity between the two Governments, and should take advantage of every opportunity, and even create opportunities, to secure such intimacy by all legitimate measures. For this reason the commission was directed to approach the Mexican Government, and to ascertain its views, aims, and needs on this subject, and to give the same ample consideration; that the United States desired to effect such intimacy as would exclude the temptation in Mexico of seeking antagonistic alliances, and at the same time avoid embarrassing engagements and guaranties. The United States realized that its moral influence and assurance of good offices to be rendered in time of need would be of great benefit to Mexico, and at the same time our Government would maintain its time-honored doctrine with respect to foreign interference in American affairs; that in giving such assurance, and in accomplishing an international alliance most to be desired, there were two important points to be considered, to wit, a reciprocity of trade advantages and a uniform currency.

Touching the latter of these considerations, the attention of President Diaz was called to the paragraph in the letter of Mr. Frelinghuysen to the Hon. John F. Miller, chairman of the Senate Committee of Foreign Relations, under date of March 26, 1884, in which the Secretary of State says:

"The United States are great producers of silver, and any market which can be opened for this valuable product is for our advantage. Great Britain, on the other hand, strives to disparage and exclude it as a means of exchange, for its use in this way depreciates her wealth and works to her disadvantage. The States of Central and South America are also silver producers, with interests like our own. It would therefore be of advantage, and probably practicable, to agree upon a common silver coin, equal in value, say, to our gold dollar, or to some other approximate standard, which, under proper regulation as to coinage, etc., should be current in all the countries of this continent. Thus value would be given to our silver product and commerce with those countries would be aided."

President Diaz responded that he heartily concurred in the suggestion of the Secretary of State: that he could readily recognize the usefulness of a common coin which should pass current in all the countries of this hemisphere: that in his belief a currency of this character would facilitate commerce and unquestionably draw together the communities possessing it. Of course the details of such an agreement must be a matter of thoughtful reflection, and he would either instruct the Mexican minister at Washington to negotiate with the Department for the establishment of such a value and the coinage of such a dollar, or, if it were preferred, he would send a special commissioner to Washington to confer with any

one the Department might select. He stated that the commission was at liberty to inform the Governments it might visit that the assent of the Mexican Government had already been given to the proposition.

Mr. Commissioner Thacher, referring again to the recent message of President Arthur, said there was a great anxiety on the part of our Government to see the reciprocity treaty already ratified carried into effect, and that the Congress of the United States had been urged to enact the necessary legislation at once. President Diaz was asked if the Mexican Government might not soon be expected to do its part toward this end.

He replied that he was very much interested in the reciprocity treaty and he believed it would be beneficial to both countries, but he feared that the Mexican Congress would not be able to enact the necessary legislation at the present session, which would expire in a few days. The short time remaining would be fully occupied in the consideration of business of immediate importance, including the passage of several appropriation bills and the settlement of a disputed election in one of the States of the Republic. Congress would meet again, however, in the spring, when he would recommend the immediate consideration of the subject, and had no doubt it would be promptly and favorably acted upon.

The commission stated that, although it was not prepared to conclude negotiations upon any subject, there were several suggestions it desired to make for the purpose of obtaining the views of the Mexican Government in the event that the scope of the pending treaty should be enlarged,

President Diaz replied that he would be glad to receive any suggestions or propositions for immediate or future consideration.

Then, referring to the printed instructions, Mr. Commissioner Thacher suggested that the position of the United States in regard to reciprocity treaties was that they should produce the greatest good to the greatest number of each country and that no concession should be made by one Government without an adequate consideration from the other. He further observed that although many products of Mexico were now admitted free into the United States, yet, except as they were protected by the existing treaties. there could be 1 gislation in our own Congress to restore them to the list of dutiable articles; and the Mexican Government must not assume that because they were free now they would always be so. Our own legislation regarding such products would be governed largely by the tariff concessions made to the United States by the countries in which they were produced.

Mr. Thacher added that he desired to present for the future consideration of the Mexican Government the practicability of inserting in the treaty of commerce and navigation, when the same was renewed, a clause which he thought would tend to build up a merchant marine for both Republics, to the effect that the stipulated benefits should be enjoyed only when the favored productions should be carried under the flag of one of the nations engaging in the treaty. This end, he thought, might be more certainly and speedily reached if the vessels of either nation, so laden and seeking the ports of the other, were placed on the same footing as domestic vessels engaged in the coasting trade.

To this suggestion President Diaz responded, with a smile, that the advantages of such a treaty would be immediately realized by the nation which happened to have the largest merchant marine, and that it was well known that Mexican vessels were not often seen upon the sea. He was inclined to encourage any proposition that would tend to build up a shipping interest in his country, and perhaps such an arrangement might be beneficial in that direction. He was scarcely prepared, however, to discuss a subject to which he had given no attention.

Mr. Thacher replied that the idea was simply suggested as worthy of contemplation, and asked whether a proposition embracing it would be entertained by the Mexican Government when the renewal of the old treaty was undertaken. President Diaz answered that the suggestion would not only be entertained, but that it would be regarded as one of the greatest importance. He did not wish to dismiss it longer than would be necessary to consult merchants engaged in trade and other experts as to the advantages and disadvantages which might occur from such an engagement. According to the present condition of the shipping of Mexico, the United States would enjoy very great advantages, but he was inclined to think that the measure would be received with some favor by the Mexican Government, as it would at least encourage the building of vessels and the education of seamen in the Republic. Mexico ought to have a merchant marine like that of other nations, and his administration would encourage any measure, even of temporary disadvantage, which would result ultimately in securing such a shipping trade as was to be desired. It occurred to him, however, that some of the treaties already entered into by Mexico might offer difficulties to the consummation of such an arrangement.