Mr. Clayton to Mr. Hay.

No. 1763.]

Sir: I have the honor to inclose translation of extracts from the message of President Diaz delivered at the opening of the Mexican Congress on the 1st instant, and to call the Department’s attention to that part of the message referring to the Pious Fund award.

I have the honor, etc.,

Powell Clayton.
[Page 653]
[Inclosure.]

The following is a full translation into English of the message read by General Diaz:

“It is always a pleasure to me to comply with the constitutional precept of appearing before the federal Congress, as I to-day have the honor of doing, in order to report as to the condition of the national interests intrusted to the administration of the federal executive.

foreign relations.

“Our relations with foreign governments are not only friendly, but are daily being extended, while in some cases the cordiality which distinguishes them has been enhanced.

the pious fund award.

“As I had the honor to inform you in my last report, the tribunal which met at The Hague to consider and adjudicate the case of the so-called pious fund of California, referred to it by Mexico and the United States of America, inaugurated its sessions on September 1, last year. The reports and pleadings having been presented in the course of subsequent sessions by the agents and attorneys on both sides, the tribunal in question handed down its decision on October 14 last, sentencing Mexico to pay past and future interest on said fund—that is to say, it decided in the affirmitive the first of the two questions submitted to it, viz, as to whether the claim was governed, as a consequence of the decision rendered in 1875, by the principle of res judicata. While thus deciding it also ruled that the sum which we were sentenced to pay as interest was to be in Mexican silver dollars.

“True to its intention, the Mexican Government has respected the definite decision of The Hague tribunal and the first of the annual payments, which, according to the sentence, must be delivered to the claimants through the American Government, has been made. The payments that are to mature in future will also in due time be made.

“Thus this question is at an end and though the result is in part adverse to Mexico, it has demonstrated to the world that there are pacific means for the adjustment of international questions and that two of the most important nations of this hemisphere have had recourse thereto.

exercise of friendly offices.

“The electoral question in the Republic of Honduras stirred up for various reasons the greater part of the other Central American States, so much so that a serious international conflict was feared in that part of our continent. Though from the beginning the executive regarded the situation there with pain and would have liked to offer its friendly and disinterested offices, it did not think it proper to do this without a spontaneous suggestion from one of the nations concerned. That suggestion was soon offered for the representative of Guatemala, at Washington, intimated to our ambassador in the United States the expediency of friendly mediation on our part. It is needless to say that I acceded with the greatest willingness to this suggestion. The telegrams that were published in the Diario Oficial will have apprised you of the excellent disposition with which the Governments of the Republics in question received the friendly offices offered by the Mexican Government with a view to saving them from an unnecessary and regretable conflict.

adhesion to hague convention.

“In accordance with the protocol signed during the second international American conference, the Governments of Salvador, Uruguay, and Guatemala have requested the Mexican chancellerie, acting in concert with Washington, to solicit the admittance of those nations to The Hague conventions resulting from the peace conference. The executive hastened in each case to give suitable instructions to our legation in the Netherlands to take, in concert with the diplomatic representative of the United States in that country, the necessary steps for the attainment of the desires of Salvador, Uruguay, and Guatemala.

claim against venezuela.

“The difficulties between Venezuela and certain European powers having been ended by virtue of a protocol whereby that Republic obliges itself to pay pending [Page 654] claims to those powers, other nations, both in Europe and America, which remained neutral during the conflict, had recourse to-Venezuela’s plenipotentiary at Washington in order to secure a friendly adjustment of their claims. In view of this circumstance certain Mexican citizens, heirs of a commercial firm to which the Government of the Republic in the middle of last century transferred a claim against Venezuela, requested the diplomatic offices of Mexico to obtain for them similar treatment to that accorded to other creditors of that Republic in the definite adjustment of its pending indebtedness. The executive could not refuse to exercise those offices, especially inasmuch as the claim, acquired, as I have said, from the Mexican Government, is based upon a disinterested loan which Mexico, during the early years of independence, made to the country called New Granada, now divided into the Republics of Venezuela, Colombia, and Ecuador. At the time when New Granada was divided into three nations each one of them assumed a proportional obligation to pay the debt to Mexico, but in consequence of its lamentable strife Venezuela has not paid even a part of the share which it assumed. Suitable instructions having been given to our ambassador at Washington, a protocol has been signed providing a basis for the settlement of this claimon the same terms as are contained in the protocols signed by Venezuela’s plenipotentiary with the representatives of the other neutral nations to which I have alluded.

relations with persia.

“In May of last year a treaty of friendship and commerce between Mexico and the Persian Empire was signed at Washington as a consequence of the initiative of the diplomatic representative of His Majesty the Shah in the United States. This convention having been ratified by the Senate of the Republic and the Persian sovereign, the ratifications were exchanged in this capital; and in order to inaugurate the relations between the two countries the minister of Persia accredited at Washington came hither in the high capacity of ambassador extraordinary. The visit of that distinguished diplomat, the first to come to our Republic from that ancient and interesting Empire, was very gratifying to the executive as it no doubt was to the country at large. The representative of Persia, upon absenting himself temporarily, presented a letter from his sovereign accrediting him as envoy extraordinary and minister plenipotentiary.

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public health.

“Questions concerning public health have been of exceptional importance during the period covered by this report.

sanitary conference.

“A general convention of representatives of the boards of health of the republics which joined in an agreement on the subject during the second international American conference, was held in December last at Washington and at that conference two delegates of the Mexican Government were present. An executive council was appointed under the name of the international sanitary bureau with headquarters at Washington.

yellow fever at orizaba.

“For the second time the yellow fever invaded the city of Orizaba, commencing at the end of August last; but, notwithstanding the virulence of the first cases, the epidemic terminated at the beginning of December, thanks to the experience acquired during the first irruption of the disease and the firm and timely measures taken by the authorities of the State of Vera Cruz; the efficacy of isolation and disinfection being once more demonstrated. The executive, on the other hand, sent to Orizaba a delegate, who, in concert with the local authorities, enforced the necessary measures to prevent the epidemic from spreading beyond the city in question.

the bubonic plague.

“Early in December the superior board of health was informed that the bubonic plague had appeared at Ensenada de Todos Santos and that at Mazatlan a contagious disease of a serious nature had developed which was also suspected to be the plague. This terrible intelligence caused a painful impression throughout the country and the Government hastened with the necessary energy to take suitable measures. At [Page 655] Ensenada only a few cases of the epidemic occurred and these being rigorously isolated, the disease died out altogether on December 25.

“A bacteriological physician was sent fo Mazatlan who studied the disease that had appeared there and proved it to be the bubonic plague. The great and natural alarm which this caused among the inhabitants of that port was evidenced by the emigration of the majority of its population who fled from their homes to seek refuge in other States. At first the scourge assumed a threatening aspect and for many days its spread was alarming; but it was combated energetically and at present it may be regarded as thoroughly under control. A special board of health, composed of the most respected and prominent citizens, was appointed at Mazatlan and has rendered most important services. The governor of the State also repaired to the afflicted port in order to aid in combating the plague.

“The main efforts were directed to obviating the propagation of the disease in other towns. This work has entailed the establishment of sanitary stations, lazarets, observation stations and the adoption of other measures that have been carried out with zeal and with the desired result, for, although a few cases of the plague have occurred in towns situated in the neighborhood of Mazatlan, they have been energetically handled and their further propagation has been avoided.

“The governors of Sonora and Durango and the jefe politico of the territory of Tepic have efficaciously cooperated in preventing the irruption of the malady into their several jurisdictions.

“In order to combat the malady at the port of Mazatlan curative and preventive serums were ordered from Europe and the United States; physicians, steam disinfectors and other articles were sent from this capital; and at Mazatlan all the sanitary services demanded by the circumstances, counseled by science, and prescribed by law, were organized with zeal and success.

“These measures have been as efficacious as could have been expected, seeing that they have gotten the epidemic under control and have prevented its propagation; but the city of Mazatlan, the most important of our Pacific ports, has suffered enormous harm which it is not yet easy to estimate in all its magnitude. The State of Sinaloa, of which Mazatlan is the chief commercial center, has also suffered heavily.

“This event has brought out the sentiments of fraternity that bind the States of the Republic together. The inhabitants of all its towns have given promptly and liberally from their resources to their afflicted brethren, thus responding to the appeal of the Mazatlan charity committee. The national committee, which was organized in this capital, has sent to the port in question over $300,000, which has enabled an active and profitable campaign to be instituted against the epidemic. It is a pleasure to state that the foreign colonies figure in the foremost rank of the contributors.

new sanitary code.

“On January 15 last the new sanitary code, amended by the Executive under powers granted it, was put into operation. The amendments which it contains are based on ten years practice and the progress of science.

* * * * * *

international congresses.

“Faithful to its purpose of causing the Republic to take part in international congresses, whereby relations of importance for the intellectual progress of the country are secured, the Executive appointed delegates who duly represented Mexico at the medical conference held at Brussels during the month of September last to study the prophylaxis of some of the most formidable of diseases. It also sent a delegation to the congress of Americanists which met at New York in October last, and has duly organized delegations which will represent the country at the forthcoming international medical congress at Madrid during the present month and at the congress of historical sciences, which will also assemble this month at Rome.

* * * * * * *

mexico at st. louis.

“The participation of Mexico in the forthcoming exposition at St. Louis, Mo., will, it is hoped, be on an important scale, for the preparations are being actively pushed and exhibitors throughout the country are well disposed. Work has been commenced on the erection of a small building [on the exposition grounds for the headquarters of the Mexican commission.

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[Page 656]

Finance Department.

conditions satisfactory.

“The condition of the Federal treasury during the months that have elapsed of the present fiscal year has been satisfactory enough. The yield of the import duties and of the varied taxes embraced in the stamp revenue shows a steady increase as compared with the collections during the same period of last fiscal year. This indicates that, if the manifold interests of the nation are considered in the aggregate, there has been no check in the prosperous progress of the Republic.

depreciation of silver.

“This satisfactory picture, however, contains some slight clouds which cast a certain degree of shadow on the future. The rapid and continued depreciation in the white metal that has occurred since the end of 1901 threatens, in the long run, in the opinion even of optimists, to cause harm that will outweigh the advantages which in given lines of national activity resulted until recently from the high rate of foreign exchange.

international action.

“For this reason, when it was learned that some other nations which use silver as the basis of the monetary system of their colonies were taking measures that would perhaps lead them to introduce therein substantial changes, the Executive thought fit, in order to avoid or diminish the evils that those measures might occasion to the silver market, to approach the Government of the United States, after having secured the cooperation of China, and institute negotiations looking to the coordination of the studies undertaken by all the nations that are interested in this question and to the unification, as far as possible, of the steps that may be taken to establish a fixed ratio between the value of the money of the countries which, like Mexico, use silver and that of the nations which have the gold standard.

“You are aware of the success of the first steps taken by the Executive and of the favorable reception accorded to our ideas by the Executive and both Legislative Chambers in the United States. This should encourage us to persevere along that line, without sparing any effort to reach a common understanding on a matter of vital importance to the future of the Republic.

monetary commission.

“While the negotiations to which I have just alluded were in progress the department of finance invited many prominent persons of our country to form a grand commission, which has been organized in order to supply the valued contingent of private information and the personal knowledge of its members for the elucidation of the question from the national point of view. The peculiar circumstances in which Mexico is situated and the necessity under which she lies of defining the policy which it is expedient for her to follow in the silver and monetary questions, independently of the result of the international negotiations, were the principal motives that prevailed on the Executive to consult the agricultural, mining, manufacturing, and commercial interests, as well as the views of the press, so that the studies undertaken in regard to this subject will be wide in scope and will approach as near as possible to perfection.

additional import duties.

“By virtue of the law of November 24 last a decree was issued on 25th of the same month setting forth the new basis in accordance with which import duties have been collected since the 1st of January of the current year. It is gratifying to me to inform you that this change has not been attended with any difficulty in practice and that its results up to date corroborate the opinion which the Executive from the start entertained as to the beneficial nature of this measure. Whatever may be the fluctuations in exchange budgetary equilibrium is assured, and the Government will no longer have to consider these fluctuations as far as the payment of its gold indebtedness is concerned.

* * * * * * *

custom-house congress.

“As a result of one of the decisions reached by the second Pan-American Conference, a custom-house congress met at New York on January 15 of the present year, [Page 657] and in response to an invitation from the Government of the United States two delegates were appointed by Mexico.

“The general director of custom-houses and another high employee of the same department were chosen, and they attended all the meetings of the congress, which, although they were few, served to prepare the ground for a comparative study of the legislation of the nations of America in custom-house questions and to lay the foundation for future labors looking to the elimination of formalities in the handling of goods and the unification of the system of measures and the nomenclature of merchandise, thus tending to stimulate international trade.

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