No. 40.
Mr. Morrill to Mr. Evarts.

No. 61.]

Sir: In conformity with the instructions of your dispatch, dated the 13th of July, relating to the best method of promoting commercial relations between the United States and Mexico, I beg leave to submit the following report:

Very little of the commerce of Mexico is done with the United States, for want of American merchants in the country to promote it; for, owing to the general insecurity of property, and the trouble met with in the [Page 124] custom-houses, ignorance of the language, &c., our countrymen prefer other localities. But by placing this country in a state of security, there can be no reason why American manufactures cannot be imported and compete favorably with those of any other nation.

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In order to increase commercial relations with this country the first requisite is peace in the country.

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It is believed that a treaty of alliance, guaranteeing the integrity of Mexican territory and its independence, with the right of one nation to assist the other against internal and external enemies, would be popular in this country and not objectionable to the United States. By such a treaty, the moral influence of it would be such that no troops would be necessary to be introduced to maintain peace, for it would be seen by revolutionists that although they might overthrow the government under ordinary circumstances, they could not do so if it were backed by the United States; and instead of getting into power through revolution, would do so through the ballot-box, and thus inaugurate; a favorable political revolution in the country.

Peace thus secured, there would be an opening for railroads built by American capitalists; and where there are railroads, American merchants, mechanics, farmers, and miners will follow, and carry with them American commerce, and there will be an end to the European monopoly.

A railroad extended from the Paso del Norte through the table-lands of this republic, via Chihuahua, Durango, Zacatecas, to Lagos, and from Lagos to Mexico, via Leon, Guanajuato, and Queretaro, to Mexico; another connecting at Lagos, via Aguas Calientes, San Luis Potosi, and Tamaulipas, to the Rio Grande, near Brownsville; branches connecting at Lagos, via Guadalajara, Sayula, Zapotlan, and Colima, to Manzaniilo, and another connecting with the main line in Chihuahua, and passing through Sonora to Guaymas, would open up the whole country to American commerce.

Manzaniilo being the only safe harbor for vessels between Guaymas and Acapulco, and there being an easy grade from the port through the coast-range to the table lands, offers special advantages over all other ports for the main Pacific branch.

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I am, &c.,

AUGUSTUS MORRILL,
Consul.