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Having in view even larger considerations of policy than those of a purely economic nature, it would, in my judgment, be well to endeavor to bring about closer commercial connections with the other peoples of this continent. I am happy to be able to announce to you that Russia now treats us on the most-favored-nation basis.

On this specific point our own treaty is silent, but under the operation of the most-favored-nation clause we have like privileges with those of other powers.

The treaty between these germs and the body, however, is only of the "most-favored-nation" class; for let these tamed and harmless friends of the family escape and enter the body of another human being, and they will attack it as virulently as ever.

This Government, however, holds that the privileges granted by the act are purely geographical, inuring to any vessel of any foreign power that may choose to engage in traffic between this country and any port within the defined zone, and no warrant exists under the most-favored-nation clause for the extension of the privileges in question to vessels sailing to this country from ports outside the limitation of the act.

The advantages secured by the adjustment of our trade relations under this law have continued during the last year, and some additional cases of discriminatory treatment of which we had reason to complain have been removed. The Department of State has for the first time in the history of this country obtained substantial most-favored-nation treatment from all the countries of the world.

The addition to the American tariff of a duty against the sugar imports from every other country equivalent to the sugar bounty allowed manufactures in that country had led to special difficulties. It had been claimed by Germany that this additional duty was contrary to the most-favored-nation clause in our treaties; and, unfortunately, the decisions on our side had been conflicting, Mr.

The advantages secured by the adjustment of our trade relations under this law have continued during the last year, and some additional cases of discriminatory treatment of which we had reason to complain have been removed. The Department of State has for the first time in the history of this country obtained substantial most-favored-nation treatment from all the countries of the world.

On this specific point our own treaty is silent, but under the operation of the most-favored-nation clause we have like privileges with those of other powers.

Let the reader consider what follows in the light of the assurances already quoted, in reliance on which Germany laid down her arms. Both for imports and exports, and as regards tariffs, regulations, and prohibitions, Germany binds herself for five years to accord most-favored-nation treatment to the Allied and Associated States. But she is not entitled herself to receive such treatment.

P. S. Think how easily, if some such tribunal existed, your government and mine could refer to it the whole mass of minor questions which our respective parliamentary bodies have got control of, and entangled in all sorts of petty prejudices and demagogical utterances; for instance, Samoa, the tonnage dues, the sugar-bounty question, the most-favored-nation clause, etc., etc., which keep the two countries constantly at loggerheads.