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TAFT STANDS FIRMLY FOR TRADE EXPANSION Calls on Congress to Uphold New Diplomacy Which Is Doing So Much to Aid Commerce with Other Nations. MUST COMBAT DISCRIMINATIONS Would Have the Administration Equipped with Weapons to Meet All Modern Economic Conditions? Proud of the Great Growth of the Ex ports of the United States. Washington. Dec. 3.?Preeldent Taffs lirst message to the laat session of Congress ln his term waa recelved with close altentlon ln both branches ?when leglslatlve business began to day. Deallng entlrely with foreign re? latlona and Amerlca's commerclal rrogren' in foreign trade. the me?sage paved tli< way for others tbe Chief r.xecutive arlll ."end later dealing with the blg questlons of legislatlon and government. Mr. Taft's meseage ?was as follows: To the Senate and House af Representa t'.ves. The foreign relations Ot the Dalted States aetually and potentlally affect the etato of the l'nion to a degree not widcly reallr.ed and hardly ?arfaaaad ay an> j o'her factor in the welfare af ihe avhoi.* | tiatlon. The position of the Vtiited States in tb* moral. int-dleetual and material r.-lationa of the family af r.atlona should b? a matter of vita! lnterest to every pa trtotk ettiaeb. The natlonal prosperlty and power lmpr.se upon us duties which wa cannot shlrk if ?c are to be true to i our ldeals. The treinenduui. growth of the export trade 0f the Unlted Btatea has already made that trade ? very real fac? tor in the Industrlal and commerclal pros? perlty of tlie eountry. -\Vith the devclop mont of our iridustrles the foreign com merce of the Tnlted States must. rapidly baoaaaa a etui more aaaaatlal factor in Ita j ?caaoaole wclfarr. Whether we have a j far-eeelng nnd wi"c diplomacy and ai nol rackleaaly ptaaejad into aaaeceeaai. war-.. and WfeetlM r our foreign pollciea ; h:< based upon an intelllgent grasp of ! present day world condltions and a clear j ilew of the potentlallties ef the future, or > Ot* govc-rm-d hy a temporary and tlmid rxpedlency or hy narrow \lews benttlng an infant nation. are questiotis ln the al ternatlve conslderation of which naal .unvlnee any thoughtful citizen that BO department of national pollty offers greater opportunity for promotlng the in? terests of tlie whole people on the one band. or gjoator eaaa?l oa the other af pormaneiit natlonal lnjur>. than that arhleh deuis with tba feralgB ralatlQM af tiie Uadtad si.it* a The fundani. i.tal mtt ign pollcies of the Unlted States BhOUM he ralsed bigh above j the lOiiflict ol partisanship and wholly distsociated from differenccs as to domes tle BOttay. ta Ha foreign affairs the I'nlted States should present to the world j a unlted front. The inteilectual. linanclal j and inJ-strlal interests of the eountry nnd the publlclst. tbe wage earner, tha farmer and citizen, of whatever occupa t.on, must ro-operate in a splrlt of hlgh patrlotlsm to promote that natlonal soli darlty which is Indlspensable to national a-fflelency and ta tba attalnment of na? tional Maala The ralattona of tba I'nited States with all foreign powara remain upon a sound ba.s!s of peace. barmony and friendshlp. A greater insistence upon Juatice to Aaarieaa etttoaeaa oi latoraata wheraaaf it may have been denkd and a stronger emphasls of the need of mutuality ln commerclal and other relati.-ns bave only j aarred to atraactbaa our Crtef-dablpa aith ; foreign countrha by placing tho.se friend- j atups upon a Bra foundatton of realltles uf well aa aaalratlana. Refoie briefly reviewing the more im? portant aarenta of tho last raai la our foreign relations. which lt is my duty to do as ehaigai with their conduct and be i-aiise d.plomatic affairs are not of a I nature to aaabe n appropriate that tbe i Secretary of State make a formal annual ( ra port 1 desire to touch upon aome of tho | e.sentlale to the aafe management of th.) , foreign relatlona of the I'nlted Statea and to endcavor. ulso, to dcflne clearly certain j conctete pollciea which are the logical j modern corollarlts of the undisputed an.l j tradltional fundamentals of the foreign policy of the I'nited Btatea REORGANIZATION OF STATE DEPARTMENT. At ti.e beginnlng of the present admin istratlon the- United Btatea, havlng fully entered uj?on its position as a world pow? er, with the rrspon.ibllltles thrust upon lt hy the results of the Spanlsh-Amerlcan ?VVar. and already engaged ln laylng the groundwork of a vast foreign trade upon whleh it should one day become more and more dependent. found itself without the machlnery for giving thorough attentton \ to and taklng effectivc actlon upon a niass of intricate business vital to Amer? ican interests in every eountry ln the world. The Department of State was an archalc and inadequate machlne, laeklng most of the attributes of the foreign offlce of any great modern power. With an approprla? tion made upon my recommendation by the Congress on August % 1909. the De? partment of State was completely rcor ganlsed. There were created dlvlslons of I.atln-American Affairs and of Far Eaat ?rn, Near Easterr. und Weatern European Affairs. To these divls'.ons were ealled from the foreign service dlplomatle and conaular officers possesslng experience and knowledge gained by aetual service ln different parts of the world, and thus famlllar with polltlcal and commerclal condltions ln the reglons concerned. The work waa hlghly speclallzed. The result is that where prevlously this government from tlme to time would emphaslze ln Us foreign relations one or another policy. now American Interests ln every quarter of the globe are beinB culUvat*d with equal as?ldulty. Thls prtnclple of polltico jeographlcal dlvlslon poaaeaaea also the good feature of ir.akine; possible rotatlon between the officers of the departmental. the dlplomatle and the consular branches of the foreign service. and thus keeps the whole dlplomatle and consular estab llshments under the Department of State ln close touch and equally lnsplred with the aims and policy of the government. Through the newly ereated Dlvlslon of Information the foreign service ls kept fully lnformed of what transplrcs from day to day ln the internatlonal relations of the e6untry. and contemporary foreign at-mment affcctlng American interests la promptly brought to the attentlon of the department. The law offlres of the de? partment were great Iy stremrthened. There were odded foreign trade advlsers to co-operate wlth the dlptomattC Bat consular bureaus and the polltlco-geo grnphlral dlvlsions in the tamuaerable mattera where c-ommerrial dlplomncy or coi.sular work call" for flttfll flPfldfll knowledge. The same oftlcers. tocether wlth the rest of the new orcanlzatlon. are aMe at al! tlmes to glve to American OttlflflOfl accurate Information as to flon* dltlons in foreign countries with whi-h they have business, and UkOfrlflfl tO 00* ' operate mnr? effeotlv.lv wlth the Con* grfss and also with thfl Othef executive deportmente. MERIT IN CONSULAR AND DIPLOMATIC CORPS. Kx|>ert ktiowledjje and profflflfllonfll tralnlnK must rvldently be the flflMttOfl of this reorcanir.ation Without .1 trulned foreign service there would not be men avallahle for tbe work in the rcornanlzed Department of State. President Clevcla.nl had taken the flrst Mep tOWETd mtro duclng the merll system ln the forcjRn aerrlee. That had been fOUowfld by the appllcatlon of the tnerit principle, with excellent results. to the entitc eonsular branch. Almaflt nothing. however, hiid heen tlone ln this direction with regard to the diplomati' servire. ln thlfl tur ot flflBUnorotal dlplomacy lt wns evidently of the flrst Importancfl to train an fldflfljuate flflfflOnnfll Ifl that hnin.-h of ti.e ser\ h <? Therefore. on November 36. IMI, by an BseeUtlTfl onler I placed the diplOOtStlC aenrlee BP to the grade of eecretnry i>r enboflfly*, Incluohre, upon axaetly the aame etrlet non-partlsan bflfllfl ot the merll flfll tem. tlgld exaininati.'ti for appointnient and promotion only for eftli iem-y ae had been in.ilntHitxd without exception ln the ccmsular service. NONPARTISAN CHARACTER OF APPOINTMENTS. How falthfui to fhe merlt system and how non-partlsan has been the < onduct of the diplornatlc and consular aflTTloflfl in the \B*t four years may !>?? Judffld from the, following: Three flmbfl?flrtOTfl now servinu held their present rank at the bfl* glnnlni of my adtnlntatratlon. <?f the ten fllllhO?flon whom I have apOOtntOd, (]-.<? weio ry promotion from tbfl rank Of min lster. Nlne mlniftflrfl now flarrlng hoM their present rank at the beglmilnfl <>f the administratlnn. Of the thlrty minls ters whom I havo appuinted, eleven were promoted from the lower gradea of tlie foreign service or fiom the Department Of State. Of the nineteen mlsslons ln Lottfl Amerlca, where our relatlons are cloflfl and our Interest is itreat, tifteen chi.-fs of n-.ission are servlre rr.en. three havl-m en? tered the service during this administra ?tion. The thirty-seven ?crotflrlfll of _m* bassy or Iflf tkm who ):a\e re.. ived thejr inltlal appointmenf aff-r passing suc cessfully the required exammutinns WOTfl choaen for ascertalned fltnens, w:tlnmt re? gard to polltlcal arhllatl- fis. A dearth of candldates from Southern and Weatern htatea has alone made it irni.ossli.le thus far completely tO e.iuali.e aii tbfl fltatfl* representatlons In the foreign service. In tbe effort to equallze the roprflflontntlOB of the varlous states ln thfl COMalar flflT* vice 1 have rnade sixteen of the twenty nlne new appolntinents as oOnflUl nhicfa have occurred durinu my atimlnlstration from the Boothorn Itateo. Tbla i? or. per cent F.very other cont-ular app<?intm< nt mflde, including the pflomotlon of eleven young men froin thfl consular UflfarUnt and etvdent Interpreter corpfl, bu been by promotion or transf.ir, bflfled l . upon etflciency shown ln the service. In order to assure lo Ihe buslnflflfl and other lnterests of the Unlted Btfltflfl a COn? tlnuanco of the re. ulting bflnflfltfl of tl refonn, I earne-tly rrnew my pfl recommendflttonfl of leclfllatlon maldi g 11 peguanent along some .mi h Unea m ti Of the measure now pending in Congrflflfl. LARGER PROVISION FOR EMBASSIES AND LEGATIONS. In connectlon with legislation for the amelloratlon of the forflfljn service I ariah to Invlte attention to the advlsability of piacing the BflJary approprlationfl npoo .? better bflfllfl. I bflUflTfl that the bflfll n pults would be obtalned by a modernte scale of flaJuiflfl, with ndflojontfl f'.n.is for the orpflnocn of proper ropreflontatlon, bflflfld la ea. ii c.'ise upon the flcalfl and cost of llving at each post, controllcd by a sys? tem of accountlng and under the general direction of tlie ix-partm. nt of State. In Une wlth the ofajoct Wbleb I have Kought of piacing our foreign service on h basla of permanency, I have at vaiious tlrnea udvocated provusinn by Congrcss for the acqulsltlon of government owr..-d bulldlngs for the rt.ldenee and offlces of our diplomatic olficers, so as to place thern more nearly on an equallty wlth aimllar officers of other natlons and to do MTfljr wlth thfl dlscrimlnatloo whlch otherwlse must necessailly be made in some Cflflflfl ln favor of men havln* large private fortunes. The act of Congrcss whlch I approved on February 17, 1911, was a right Btep ln this direction. The tflCM tary of State has already made the llmited recommendations permltted by the act for any one year, and It Is my bOpfl that the bill lntroduced in the House of Repre aentatlvea to carry out these recommen? dations will be favorably acted on by the j OflBflJaTflflfl during Its present si-sslon. In some Lntin-Amcri. an countries the expense of government owned legations ?wlll be less than elsew hetc. and lt is cer tainly very urgent that ln such countries aa aome of the republlcs of Central Amer? lca and the Caribbein, where lt ls pecul iarly dtffkult to rent auitable ouarters, the representatlves of the Unlted States ibooM be Justly and adequately provided with dismlfled end suitable offldal resldences. Indeed, lt Is hlgh time that the dignity and power of this great natlon should 1?- tlt tlngly signallzed by proper bulldlr.gs for the occupancy of the nation's tepresenta tives i-veryw here iii.ioad. DIPLOMACY AND COMMERCIAL INTERCOURSE AND PEACE. The dlplomary of the present admlnis tratioa haa aought to respond to modern Ideaa of commerclal lntercourse. This poliey has been characterlzed as substi tuting dolhr.i for bullets. It ls one that ?ppaala allke fi Idealirtic humanitarlan sentlmentaj. to the dlctates of aound policy an.l BlratQT and to le-ltlmate commerclal alma. it ls an effort frankly dlncted to tha llICmaa Sl Amerie_n trade upon the axlornatle prlnelple that the go'.ernment of the I'nlted States shall extend all proper aapport to every lat-tfaaata and benericiai American enterpri-e abroad. Ifow great have been the results of this diplomacy, coupled wiih the maximum and mlnlmum provision of the tariff luw, will be seen by some conslderatlon of the wonderful lncrease in the export trade of the Unlted States. Because BaOdern diplomacy la cornmerelnl there has been a disposition In aoOM quarters to attrlbute to it non** but mat'ilalisti'- aims. How strlklnglv erroneous ls such an lmpresslon may b? seen from a study of the results by whlc'i the diplomacy of the I'nited States <_n be judired. SUCCESSFUL EFFORTS IN PROMOTION OF PEACE. Jn the field ot work toward the ideals of peace this government n"gotlated, but io my rej,ret was unable to conaummate, two arbltratlon treaties whleh set the Mgbaaf mark of the asplratlon of natlons toward the substltution of arbltratlon and reason for war ln the settlrment of 'In? ternatlonal dlepotea Through the efforts of American diplomacy sevcial wara have been prevented or en<>d I rcfer to the suct-ssful trlp.irtlt" medlatlen of the Ar gentine riepuhllc, l'razll an.l the i'nlted States between Fem and 1-cuudor; the bringing of the bonndary dlapata between Panama ond Coeta EUca tfl peaceful ar!>l tration; the ataytni of wariike prepara ttona wh.-n Ha>ti and the Doniimcan Re puhllc were on the vorgo of hoattlltlaaj tha etopptag of a wnr iu Nlcaragaa; t,;" lialtlag of Iniernecine strlfe in llondmas. gl \.'iimii nt Of tno I'nlted States -was thaaked for Ita Inftneooo tararard tbe res toration of amlcatale relations i itwaen tha Argentlne RepabUe and BoUvta. The diplomaoy of the i'nited Btatea la aetlre ln seekim; to a-suage tlu* retnalniiiK IB* leehng between this eountry and the Re IpubllO of ColomMa In the recent civll ' war ln China the I'nlted States BO0CC00 j fully .jolnr.l with tbe other interested | powara la nrglng an oany cessation of ! haatilltlea An agreemant has been r* aehed I batween the gevernmenta of CMU and | I'r-ru whereby ih* c< lehrsted Tacna-Arlea dlepute. whteh haa so *ong emblllored _a* I teiiiationai relatlona oa the west coast '..f louth aaaerlca, baa at laal been ad Ijnetad. Blimiliaiieoiial] came the n-ws that the booadai. dlapata between Peen nnd Beaador had entered upon a ataaje |of arnlcahle settlement. The position Of the Unlted States in reference tO the Ta.na-Arl.a d.spute betwe. n I'bill and 1'eru iias beea ..ne of non-lntervention. bui one of frlendly lafloeax e and pa.-itic coun sel thioupl'.out the j? rlod duriug wblcb |tha dlapata In aueaMoa haa been tiie ?ub 1 i., r of Intarehaage <>f atow* betwooa tbiH : gorernmonl hh-i tbe two gnveratnanta ba l me.tiatt-lv eOBCeraed ln the general ; eaafni Pf internatlonal te_-toa on the j west coast of South Ameri.-a tlie trl ; nartite mr-diatlon to which I have re i.rred has b.-. n a most potOaTal and beneri eent fa. tor. ; CHINA AND POLICY ON FINANCIAL INVESTMENT. in china tbe policy ef ea**a_raa1__ Rnanetal Inreetmenl to anaWe tbal ooan* irv to belp itself l,as had tiie r.; ilt of gl-nni new Hfe aad praetkal appllcatlon to the open door poU* r 1 .naleteBt |,ur|? h.- of tbe pres.nt admlnlstiatlon ha baen to aneovraBa tba ata of american .apital ln the dcv<*lopment of China t>'-' th.- j r<,motlon of thoae <-ss. ntlal reform* to wl leh Ohtna ls pledgcd by treaties wtth tbe I'nlted States and oth.-r pow.ra. Th* hypothecatlon P> for<ia,'n bankers tn ron n-iion with eeftala b_l-_trl_J enter ptlaea 0000 a? the llukuang iallways, af the natlonal r-venaaa upon whl-h these reforma depended. led tbe Department Of state garly la tba aa_at__a_ratlon ta de? mand for Amerieaa .-tiizens parttotpatSon ln aach antai'priaaa, in arda* that the I'nlted States might have equal rights ... nd an equal rolee m all queatloaa per* talntog to the dtrp sition af tha pobll ? tues eoricerned. The same policy of notlng Internatlenal aeeord amanftba ? -a i.aving atndlai treaty >i_s.ts as ? elrea ln th* mattera of reform. wh'< h ,, noi be pai lato practloal effeel %viti rnmon eonaeat of aii i i adopted in th. aaaa ol the laaa daali-d by c'bina for tbe rafarn of its currency. Tbe prlndpla <>f Intarnattaaal . ,,,-*,,,. -lation Ifl matters Of OOmfflOn ll "< . wblcb our policy haa already baaed ,,, all of the abore haataaaea admlttadly beea a graat fhctar m ,,,.,, eonee-rl of tbe powera arhleh has , bapiiiy <oik.pI-raoua dortafl the perlod ef twi-dtloo throogh Which the graal CWneaa ratlon has been naeelng CENTRAL AMERICA NEEDS jHELP IN DE3T ADJUSTMENT. ln Central Amerlea the aim has been to heip ?_?*_ eoantrlea as Nlearagua and Honduraa to help thamaalaaa They art the Inunedtota banefldarlea The natl m i Bt to tiie Inlted Htates 1- twofold. .. it is obrloaa thal tha htoaraa Doc trine is more vltal m the n.-'.ghborhoo.l of the Panama _____ aad tho zone of the nu than aaywherc alaa Thara, too. tbe rnabatanaaee af that aoctr_M tuiu Ijnoet heaviiy npon tba Unlted states. it la therefoio essential that the countiieH ?wlthln thal aphera hall ba ramorad from the jeopanly ln\olved by heavy foi. Iki. | .1 lit and ebaotle natlonal tinance.H and from the OtOt prosent daOfa-T al lnterna tkmal eompllcatlona due t-> dteorder at home. Henca the Unlted Btatea has been glad to ancaaraaa and aanjporl American banbera who were willing t*> lend a help iu_ hand to the linanclal rehabllltBttOO af poeta countnes, beeause thla linanclal re habllltation nnd the protection of their custom houaea from being the prey of would-be dlatatora would reinove at one itroke the m?*nace Of for-Un credltors and the nj.-nace of revolutlonary disorder. The isoeo-id adrantaga ta the Ualted S'ai< | is one aflectlng cblefly all the southern and OoM ports and the business ?nd ladnatry ef tbe Bootb The rapnbUea .,f Caafral ionartaa and the Cartbhaan posse?s great natural wealth. Th**y need only a measure af Htabillty nnd the maaaa Of linanclal regeneratlon to enter Hpoa an era of Baaaa and prosperlty, bringing proflt and happlr.ess to tbemselves and at the aame tlme cre.itlnp, condltions aure I to lead to a flourb;hing lnterchange of j trade with thli co intry. I wlafa to call your especlal attention to tbe recent oceui reoeea in Nlearagua. for II belleve the terriob* event? raoaviai there j.luiing the ieNoli.tion .f tbe j.ast siiuune: ?the useless loas of life. the devastatlon I of property, the bombardment of defence ! less cities, the killln. and uounding of ' women and children, the torturlug of non ! combatants to exact contributlona and the I sufferitig of tin asaada of human l?ein_s? , mitilit have beea a'.ertcd had the Depart jment of Btate. tbroagh approval af the loan convention by the Senate, h.-.-n per initie.l to carry out its now wei] dei Oloped paUcy of eneonraglna ti,.- extendlng ut fiii.ir.<iai ald to araah Central American states with the pilmary obje.-ts of avold iug just auch revolutions oy as.lstlng those republlcs tb rehat dlltata their flnances, to establlah their cuiTency on a POINTS IN TAFT'S MESSAGE The national prcsperity and power impoae upon us duties which we cannot sliirk if we are to be true to our ideals. In its foreign affairs the United States should present to the world a united front. Recommends legislation making permanent the principle of non partisanship in the diplomatic and eonsular service. Proposes better salary basis and larger provision for embassies and legations. Substituting dollars for bullcts the best policy in diplomacy. Healthy commercial rivalry in international intercourse best assured by the possession of proper means fcr protecting and promoting our foreign trade. Department of State has for the first time in the history of this country obtained most-favored-r.ation treatment from all the countries of the world. Maximum and minimum provision of the tariff law should be so amended as to provide an effective means of meeting the varying degrees of discriminatory treatment of American commerce in foreign countnes. Recommends legislation allowing application of a graduated scale of duties to imports. _'___? Several wars prevented or ended through the efforts of American diplomacy. Central American countries helped to help them_elve_. Neutrality statutes enforced with new vigon Successful policy of patient non-intervention in Mexico. Need of a system of agricultural credits for American farmern. America cannot take its proper place in the most important fields for its commercial activity unless we have a merchant marine . . . unless we have eood American banks in the countries referred to. stahle hasis, to remove the flflflCfltfl houses from the dam-er of rOTOl itionfl by flf rangltig for their aecure admlnietration and lo Mtnbllflb reliubb- bflAka DnriDC the last revolutlon ln Nicaragua, ti,e gorernment ?t that repoblk havtaC admitted Its Inablllty to protect American life and property agalnst flfltfl of sheer latelflflflflMflfl o" the i,art of tl"' _________ tents, and havlng rflfljM?tfld this govern m.T.t to assume th.it flfltofl, lt became Hflfl?IfT lo m*A over two thousand ma rlaflfl and btnaJacbota in Ntearasua. nwlng to tl.'ii pfflflflnrfl the eonatMatfld government of Nlcaiagua Wflfl ffflfl ' > *?* fOtfl Its attention wholly to its Intflmnl trutibles. and waa IbOfl ?-nnbled to M.-unp OUt the rebellion ln a short flpflflfl of UflM When the Rod Crflfli flnppllflfl aeat to Qranadfl had been exhausted, c.glit thou? aand persons having been given tooi Bt OM 'lay upon the arrival of the Anifrlean [fOfOflfl. our men lupplles other Bnfflctfl \ nate, needy Niraraguana from their own . neka i wteh to eonaratolatfl tha | ofll'-era and men of the Qnltfld ftatea navy and tnarlne I orps who took part hi Ifl ?UlillflMni order In Ni. aiagua upon their splendid t-ondur-t and to rflCOrd with borrow the death of seven American nia rtnflfl and btoej-ehet* Blajefl thfl ?? flfltab llshment of p-noc snd order fllflCtlOOfl l.ave DflflB held *mId OOndJtlOM of .piiet and tranqullllty N'enrly all the \m. rlean ma . ;n<-.-. l.ave i.-.vv bi-en v. ? 'I I'" country should soon be Mi thfl rOfld to re rovery. The only appnr-nt danfflT now ihi'-atening Nlcinigua arlsri fiom th> shoiia?re of fonda AlthOflgh Amerl. an i.ankeis ha\e alra-ady ren-Wed a?Ifltanca, they may nafurally be lc;lth to advance ? loan adeqnata to ?et the eountry upon iu fl ? ' wtlv.it th- M] port .?' Ofl . ?")? !i con? ventlon as thfll of June, 1111, upOII whlch thf S-r.ate ha.' not yet :< ' ENFORCEMENT OF NEUTRALITY LAWS. in thfl pflflMwal eftort to eontrlboto to the . njov :n, nt of pe.irr by th"Se r< p ;' I Vhlct are near iietgl.hors of ti.e Un.ted States the admlnlstr.itlon hflfl flflffltflfld Ihfl j nj-called nentrallty BtatUtflfl arlth ? new ! v Igor, and those tt.itlltes vver> great Iv I a-trengthened Ifl flflfltrlCtlflg thfl ex- ?? tion of arms and BBUnltlona by the Jotnt resolution (>f last March It ls *tlll a ro* grettaMa facl thal certain American port* are made the rendexvoua of pr.>f> s-ional rcvolutlonlfltfl and othera en_ac*d in ln* trlgue ,-iKalnst the paflOfl flf thOOfl rflpoh" ii. i it mofll i>e edmttted th it ? eaflhm* ally a revoljtl'.n ln thN rogtOfl la fUflttfled ii? a re.il nnd popular movem.-nt to throw ofl! thfl flhnehlflfl of i rtctona und tyrfln Bjflfl] goveinnwnt Su-h w.is th- Nt-a raguau revolutlon aaaliuri ihfl Zday. rck-inie. a natlon flnjoying our llboral Inatltutloi cannol eacape aymi Itby wlth :i true popular movenMni flnd om ao w?n tettfled ln verv many ca_ea? hoi i n rolutlona la thfl rflpubll i ln i i.??? do bisis in prtoeiple, bai ara dufl mflcely to the nachlnatlom of coi i. sh and aiubltioua im tt. .mai baVfl no effeet but to bring new aufferlng and fr< '? . -.. an -iii.-ii?' opprtflflfld v*'o]>\' The .pie-atlon wh?ther thfl use of Amerl lorts as forl of r.-voi iriotj., can be brst,tl,.il' with by fl further am ment to tbi nautralltj ital taoorwhethei lf would bfl BAiat Ifl _*?! wlth speclal ? ?;:*.*?-, hy tpodal laws Is one wcrthy of the careful consldcration of the ''ongr?.s. KNOX IN CENTRAL AMERICA AND THE OARIBBEAN. , ImpresHci vith Ihfl par' ..- Impor* [tanofl of ti.e rolattona between the United stittes and the repubUcfl of Central I Amerlca and the CiftbbflflJi rflfkNl, flfhlell j of Bfloflflfltty must bocoma Atlll more ln tlmate by reaaon of tbe n.utual advan tagflfl whi.h wi;i b.> pr?ntfld by tba I openlng of the l'anama ?'anal. I directed [the Becretarjr of stat.- last fl*ahruary to 1 vtslt these rOpUMlflfl Tor thfl Wirppflfl of irlvlng evidence or the Mnoerfl frUndshlt> [and good wiii which tbfl Bovernnaonl _nd j ti?or.ie of thfl Unlted Btatea bear toward 'them. Ten ropbbltcawerevtotted. rv.rv ! where he was rflflfltffld arlth I cordlallty I of wnloooM and a pflafltoflttp of hospltallty 1 sucli as t>. Imprt-MS rtn- d.-efdy und to j merlt our wannest thank.'.. Thfl ippr-.la i tion of tl,e ppfflTOMflttfl and pflpplflfl of : the c-ountn-s vlslt.d, Whloh hflfl b.-en ap I proprlati-ly shown in varlous Wajrfl, IflflTOfl [ tne no doubt that his vlslt wlll OpndUflfl I to that fllfllflV union and better under standlnK betWfl? the TTnlteJ Matflfl aml Ithoflfl republtea whloh i hav* had it mueb a' h. ai t to promotfl. THE ADMINISTRATION'S MEXICAN POLICY. l-'or two years re\olutlon ar.d flOUtttflf revolutlon have dlstraught the nt-lghbor Ing republlc of ilexlco. liriKaniagi) has lnvolved a great deal of depn.dutloti u|.on foreign lnterests. There have cons-tantly n-curred ipicstlons of .-xtr-n,. < 1 ? ? 11 ? .,< y. nn Bofflral floenfltom oorj drmeult situa tlons hiive arlsen on our frontier. Throughout this trylag period tha pottey of tlie Cnlted States has bflflh one of pa* i,. nt non-iiitervi ntion, flt<adfa_l raoognl tlon of conatituti-d autburity Ifl the Dfllgh* boring natlon and the flurttofl of OOOtf effort to care for American tntflTflfltfl, 1 profoundly hojte that the Mexican natlon may sooti NflflHM the path of ordc-r, pro.s pertty und progress. To tlnit aaUOfl Ifl Its sore trouhlflfl UM Bjrmpathflttfl irlnd hhii> of tbe Dnttfld ptatefl baa baflndfloaon* atratad lo a blgh dflajroa Thflta M.xico al Ihfl bflfljlnnlni of thfl FerolutlM ?omfl thiit> >.r forty thonaand American cltlzciis enxagvd In CflKrprlflflfl contribut iti? gr.-atly to the prflflfM rit v ..f that rt* public and also bciu-Htlng tbfl IflJiportflJIt trade. between the two countries. The lnvestment of Aincrlcau. .apital ln HaxtOO has been eslimated at $1,000,000,000. The reflponfltbtltty of endcavorlng to eafe fUard tl.ose lnterests and the dangers ln?pfllflhlfl from proptnqulty to ao turbu lent R attUfttlOfl have been gTeat, but I am happy to have been able to adhere to the polo v above outllned -? pollcy whl-^h I bopfl nm> bfl ?"on Justlfled by the com pli tfl BUO BBt Bt the Mexl.an people ln ragalfllng tlie Mflflflfflgfl at peace and good ordflf. AGRICULTURAL CREDITS IN EUROPEAN COUNTRIES. A most Important work accompllshed in tbfl paflt year by the American dlplo matlc ofli.. rs In BUTOPfl ls the Inveatlga tlon of thfl agilcultural credit system ln the Buropeaa countries. Iloth aa a means to afford r.-llef to the consumer* of this OOUfltry through a more thorough devel opment of agrlcultural resource* and as a ni ans of more sufndently malntalnlng the agrlcultural population, the project to i-stablish credit fai llltl-a for the farmers Ih u concern of vltul Importan. e to this natlon N'o evldence of piogpcrlty amonK well oatahH-hfld farmers should bllnd us to the fact that lack of capital ia prevent Ing ? d.-velopm-nt of the natlon'e agrl cultural reoourefla and an adequate ln ctea.?e of the land under cultlvatlon; that ?grlcultural produetion ta fast falling be hlnd th? lnereaae ln jopulatlon, and that. althe-.igh th-s* wei] establlshed farm-Ts ar.- DWlfltalnod ln Increaaing prospa-rlty Bflcaugfl of the natural lncrease In popu Utlun, w.? are not dcveloplng the Indua try of agrii-ulture. We are not breedlnfr ln propoi tlonato BUflflhon a rsi'O of lnde pend.nt and Ind'petid.-nce-lovlng lmid OWnera, fflf a la.-k of whldi no (frowth of H i eon rflflgtfl Our farmers have b.en our nmlnstay ln ttflHfl of crlsls, and ln f'.r.r- it must still largeiy be upon tbfllr Btahtltty and eommon sense that this demoeracy must rely to conserve Its prlndplflfl of Mlf*government. Th" need of capital whlch American farmera feel '<- day had been experiencod I v thfl fativra <*t Europe, - Ith thelr OOflturlea-oM farms, many years ago The problera had been fluoeoflflfulty soived la thfl OM World and lt was evldent that the tannerfl Of tbla eountry might proflt by a study or :h<-lr systems. I therefore ord. red, through the Department of Ftnte. an IttVOfltlgatlon to ho made by the dlplo m if.' ofleflN ln Kurope. ar.d I have laid the reHuIts of this investlgatlon before t e OoVflrnOffl flf the varlous states, wlth thfl l...p? that thev wlll be used to ad raatage ln thelr forth.-oming mtetmg. INCREASE OF FOREIGN TRADE. in my uufl aan iai meosaaa i said that Um Bflca] rear end<-.i june :w. 1011. wm not, wcrthy as markinn the hlgbflflt roOOfd ? ?' ? cporta of Amerkan products t.? for Thfl BflCfl] \i-ar :J?I2 snows that thia mt.- of idvaaee has been mala talned, the .o:ai domeatlc exporta havlng ? varuatton approxlmatflly of ftJOM(0,0Oh red wlth a fraction over *-'.uuv tha pn loufl r< ar. n la alao nt tbal manufnetured an.i partly manufaeturod article* continue to bfl the chief commodltlofl formlng tha volume of our augmflntfld azportfl, tho demands of our own people for oooaumpUofl rflqulr ?>ii tncreaalng proportlon of our Rhundanl agrleultural producta bc kept at hom ? Tn the Bacal year IHI tbe exports of articles In the varlous fltagflfl of rflaau* re, not Including fOOdfltuftfl partly or wholly maanflactured, umounted ap proxlmateljr to UtnMOMO, ln the tiscal \-ar D1J thfl tmal Wflfl n.-arly $l,?)2.,,t)Ori,aOO. a > fllfl .,!' 'IM.'l-J.OvO. MAXIMUM AND MINIMUM TARIFF PROVISION. The importat.ee whlch our manufaet in es hava uflumod ln the oommflrofl of ih- world ln competition wltb thn manu Cacturefl of jtln-r countries agaln drawi DtlOB to the duty of this govt.-tnmenl t<. fl e its utniost . BdflaVOTfl to ee. ure lm partlal treatmanl f..t Amorioafl products in aii marhflta Haalthy commercial ilrv in Internatlonal lntercourse la i ?-t aasured by IIm pooflaflfltoa of proper mean for protoctlng and promoting our fOrdgfl trade. 11 i< natural tli.it com petltlve i_aintrles should view wlth aome conceffl Tiijs sU.tdy ex.pansl.rn of our OOaunaroa. lf ln some lnstances the BM BflUTflfl tak.-n by them to meet lt are w i antlraty flquttabla, a remedy should he found. In fOrmer meaaflgflfl I havo de acrlbed ihe nflfljottatlona of the Depart? ment of State wlth forelmi irovernments for the fldjuatmonl of the maximum and Btlnbnum tarlff as provided ln Section I of the tarlfl! law ..f ;<?.B. The advantagea secured by the adjustment of our trade relatlonfl andflr tbla law havo continued ilurlng the last year, and some addltlon? al Cflflflfl of dls.rlmlnatory treatment of whlch we hud reason to complaln have heen remov..1. The Dcpurtment of State has for tbfl flrst time ln the hlstory of this COUntry ObtabMd substantlal tnost t'avored-natlon treatment from all the COUntrtcfl of the world. There are, bow . v. ;, OtbflT InfltflBOflfl whlch, whlle appar? ently r.ot conMtltutlnj' undue dlscrlmlna tlOfl in the flflnm of Se.-tlon L*. are never thfclt-aa fllOflptlo? to the compb to ccjuity of tarlff treatment for American prod? ucts that the lxpartment of State con sistently has aought to obtaln for Ameri? can commerce abroad. NECESSITY FOR SUPPLEMENTARY LEGISLATION. The.se .|. v.-ioptnents conflrm the opinion oonvoyod to rou io n>y annual message of ll'!!. thai. WhOfl t1'.- maxiniuni and mlnl mum provision of the tariff law of 1>? ii.is bflflfl fully juatitlc-d by the succesa achl. v.-.l m rcmovlng prcvlously cxistlng undue dlscrlmlnatlona againat American products, yet expcrlence hus ahown that this feature of the law ahould be amend ed ln such a way as to provlde a fully effectlve means of meeting the varylng degrees of discrlminatory treatment of American commerce ln foreign couutrletj atlll encountered, as well as to protect against Injurious treatment on the part of foreign governments, through either leglslatlve or admlntatrative MMWeA ! the linanclal Interests abroad of American I citlxens whose entcrprlses enlarge the ] market for American commodities. i I cannot too strongly recommend to the | Congress the passage of some such en | abling measure aa the bill which was i recommended by the Secretary of Sute I ln his letter of Deeaaaber lt, 1911. The ob ! ject of the proposed leglslation is, ln brlef. to enable the Executlve to apply. ' aa the case may require, to any *r all I commodities, whether or not on the free ! list, from a eountry which dlscrliniuatc* against the I'nlted States, a graduated seaie of duties up to the maxlmum of 23 per cent ad valorem provided ln the pres? ent law. Flat tarlffs are out of date. Na tlona no longer accord equal tarlff treat? ment to all other natlons Irrespectlve of the treatment from them recelved. Such a fiexlble power at the comrnand of the L"_ecutive would serve to moderate any unfavorable tendendes on the part of those countrles from which the Importa tlons into the Unlted States are substan tlally conflned to artleles on the free 11st, as well as of the countrles which flnd a lucratlve market ln the I'nlted States f >r their products under exlstlng eustoms rates. It is very necessary that the American jtovernment should b?? equlpped with weapons of negotlatlon adapted to modern economlc condltions, In order that we may at all times be ln a position to gain not enly technlcally Just but aetaalty equltable treatment for our trade. and also for American enterprlse and vested Interests abroad. BUSINESS SECURED BY DIRECT OFFICIAL EFFORT. As llluatrattng tho commerclal beneflts to the natlon derlved from the new dt I ploma-y and Its effectlveness upon the I materlal aa well as the more ldeal side, lt I may be. remarked that through direct of? ficial efforts alorie there have been ob? tained ln the course of this admlnistration contracts from foreign governments in volvlng an expendtture of 150,000,000 ln tho factorles of the I'nlted Stat?s Consld Uratlon of this fact and some reflectton ! upon the necessary effects of a scleiitttb* j tarlff system and a foreign service alert 1 and equipped to co-operate with the busi I neas men of Amerlea carry tbe convlctlon j that the gratifylng lncrease ln the export l trade of thla eountry ls, ln subbtantial i amount, due to our lmproved govern I mental methods of pn'teetlng and Btimu ' latlng lt. lt is germane to these obs.*r I vatlona to remark that ln the two years Ithat have elapaed slnce the successful i negotlatlon of our new treaty wtth Japan, I which at the tlm? seemed to present ao j many practlcal difflculttes, our export. | trade to that eountry has Increased at tba rate of over $1,000,000 a month. Our ! exports to Japan for the year ended Jun* '.?. mo. were MIJHtHl while for the yea ended June 30, Hlt, the exports were $63. I 47*5.046, a nrt lncrease ln the sale of j American producta of nearly IM pei cerr*. ARBITRATION WITH ' GREAT BRITAIN. I Under the spe. lal agreement entered Into between the I'nlted States and Gr-at 1 Hrltaln on Augtist 18. 1910. for the a-bl ] tratlon of outstandlng pecunlary clalmi, a achadttfa of claims and the terms of aub m'sslon have been arreed upon by tha iwo goverumeiits, and together with the ?ape? clal agreement were approv>. d by the Sen? ate on July 19, 1911. but 1n n.-or, mce with the terms of tbe agreement th?*> did not go Into effect until conllrmed by the two governments by an exchange of notes. I which was done on Aprll 2*5 last. Negotl | ntions are stlll ln progress for a aupple mental achrdule of elalms to be aubmlt te.1 to arbltratlon under this agr. ement. BBd meanwhtle the necessary preprratlon^ for the arbltratlon of the claims include I In the flrst schedule have been umertaker. nnd are belng earrled on under the au thorlty of an appropriatlon made for thm purpose at the laat session of ?'ongress It ls nntlripated that the two govern? ment. will be prepared to .-all upon the arbltratlon trtbunai. eatabNalM under thla agreement. to meet at Washington I early next y-ar to proceed wltb thla arbt i tratlon. FUR SEAL TREATY AND NEED FOR AMENDMENT. Tha a. t adopted at the laat seaah'.'i of reaa to gtre effea to the (br convention of July 7, mt, between Oreai nii!_;n. Japan, Boaata and the Unlted Btatea, provldod tor the susp-msion of ?n land klliing of aeala on the Mbftov lal anda for a perlod of flve years. and an oh JaCtloa ha:< BOW been prescnted to this prorWon by t'.-.o other partles h which raisea tba laaue as io whether or not this prohlbltlon of 'an.l kllllng 1? in consistent with the .-plrlt. lf not tlie letter. ot the treaty atlpulatieaa The justitva tion for aatahbahlng this close leaaon da* pends, under the t.i ius of the convention, upon how far, if et all. lt ls neceaeary for protectlng and preser Ing the Amerl caa fur s?'al herd and for ln'rcasln** Ita number. This la a quiadon requirlng ex amlnatlor. of the present CobdltJon of the herd and the treatmen' whleh It aeeda ln tb.* llght of aafnal espartaaca and aden* tlflc investlgatlon. A cirrful examlnathm of the subject ls now belng made, and thLs covernment will *onn bn in possession of a cnslderable amount of. new information about the American seal herd, which has be.-n secured durlng the last aea_on and will be of great value in d.*tennlnlng this iiuestlon; and lf it should appear that there ls any __M__rtat__jr ai to the real necessity for iniposlng a close seaaon at this time I shall take an early oppor? tunity to addre&s a special messaK-* to Congreaa on this subject, in the bellrf tb al this government should yleld on this point rather than give tbo sllphtest ground for tlie charge that we have been ln any way renilsH ln observlng our treaty obllgatlons SETTLEMENT OF ATLANTIC FISHERIES DISPUTE. On the _Hh of July last an agreement was concluded between the I'nlted Statea an*l Oreat Hrltaln, adopting. with certHln modlflcatlons, the rulea and mcthod of procedure recommended in the award rendered by the North Atlantlc Coast Flsherles Arbltratlon Tribunal on Sep? tember 7. 1910. for the eettlement here after, ln accordance with the prlneiples lald down in the award, of ouestions arislng wllh reference to the exerclse of tba American llshlng llbertics un?l.-r Artl i-l.- 1 of the tre.-.ry of Oetober 2<>. 1818. be? tween tho Unlted States and Oreat l'rlt aln. This agreem* nt recelved the ap proval of the 8enat? on Auguat 1 and waa formally ratlfled by the two governments on November tl last. The rulea and a method of procedure embodled in the award provided for det. inilnlng by an tmpartlal tribunal the r*asonab!ene-s of any new flHhery tegulatloits on the treaty ooaata of Nowfaoadlaad au.i cana.ia. be? fore aaeh lefiilatloae oauld be aoforeed against American tlsherui.n exerclsing their treaty Ubertlos on those (ousta. and alaa for daUnatafai the _eHn-tat_*a of bays on auch coaata more than ton mlle_ wlde, ln accordance with the deflnltlon adopted by the tribunal of the meaning | of the word "bajra" ?_? uaed m the treatj In the aubsequent n?got!,.uon? hetw*. the two government*, ladertaken for 3 purpoae of glvlng practical . ffect to thZ rulea and methoda of frocedure, lt ** found that certain BflflUdcatlooa thertj were deetrable from the point of vle-* J j both governmoflta, and these n->. t ? havo tlnally reaulted ln thi ^!-:mtr. above m-ntioned, by whli h tha hwim recoiniiiendutiona, aa mo llfled by ?:. H^| consent of tiie two gwvernmi nta, ire _a_i ly adopted and nmo.- effecdre, thi? brlflglDg thlfl centiry old coi troveny toi tinal cooclufllafl ivMcta ia eq . :>? r.e&o, dai and aatfafaotory to uueau OTHER POINTS IN THE MESSAGE. President Taft tells of pr traat ln uh settlement of the long atai ; dlflpute wlth M.-xi -sea th? 1 hope tbal the question will aootj be dfl. poseil of. Referrlng to the work of the npijj eonferenee at The Hag. Mr. Taft saw If. wflfl "moet unfcrt'inaf. " that thia m eriiment falled to do ita share by negl?et. Ing lo paaa anti-na: he urgofl Congret - to act l ? faa*A ures. In brlefly mentloninr; the Bfllkar wa, ti.e PrflflgCflat reporta - of t*? Americj.n araneera to T u Tha apfltaraaoe or a largi fleet ol Kiin. pe.in wirshlpa in thfl l ? ?-. rn, \, a-sured pr itei tloi of I i? | that qt.arter, leavlni d sut? erulsers free to act lf Bflfld be, alOflg Uu Medlterranean coafltfl The United States. Mr. Taft aaya, taka ,1 iiveiy intere- i.- thi Internatlonal dli 'i-i-ltk.ns to ba n i I for ti.e p itlca governance and administratlon of .-,:'j bergen. He relatflfl thfl flucca?fnl effort of th's government to place Ubfltifl Ir. i posplon to pay Its ladflMfldflflflfl, ttr. Taft sketches rapldly tiie troubla wbl b led |0 a change of jfovernment li f'hl ia and the part taken by the L'nlto Stren ln tne I'blnese loan affair 1 urnlng to Bouth Amerlca, thfl Prafl deit tella of cordlal relations wlth Argaa tlr.a. Brarll and Chlll. He relatea th tr iblea In Kcuador and the exerclse e\ tl i American good offlces there. Arbltra t -n of the lAndreau clalm agalnst Pen 1 a been secured, and \>r.e>.jeia, he say. 1 paylng off the last of the c'.alms fl American ettJflflBfl President Taft tells of the Arr.?ri*ai r-edlatlon in the trouhles of the Domlal c:n RepubMc and Haytl. and of the '.aal Ing of Amerhan marinea in ruba dur_* the Mflturbancflfl in that Island. American supervlslon of the recer.t el? tion ln Panama is related, and referena J ia ma!' to thfl oflgotlatlona h?twa? American bankers and the government a IdflMtamalfl for a loan to rehabilltateOu* | temalan Bnanofla, FhlUag flfl arrangflflUfl flflflMIng Guatein-ila to flatlflfy fUfll Brll lah claims and ImprOVO Its flnanrUI potl tion, the President adds, "it may becomi ImposHlhle for tbe goVflfflflflflat ? f th. Tlnlt-d States to flfleapfl lt* i t.M-iat'ona li conne.-tlon with such al mi; become naccflflflry to b?j I r I l t legltimate foreign claims.'' The President dOflfla blfl rorlflW of fe-j trai Amei l< flfl condltioni i < xBtM sicn of regrot that th. ; nancl i outam tion between the Unlted Stal duras has IhUfl far tfl led of TO RETAIN AND EZPAID OUR FOREIGN TRADE. In concludlng "r- Ta*' says: * It |a not poflflil ' ' gn a eomm ml< itlon i relatlona of thi de- illed as to oonvay ? sion >f tlie em rraoua portanca and acti ; if thia govi minflni ? Jtr the American people thfll fr? in f relgfl bv rketa ? :.un ei dlsnensabb- to o._r -ro- aflflj greater effort* muflt be M the Amerl an mfrehnn-, and export-. arlll flnd mn which Am ri- an trade am tmamd Bato Bortflof oamatam \ other eoBunerdal nationv j The a wara U ? .;-..>n, thfl h ...? of Ihls ? . mueh. Tho abaoiut d effori and i of purpoae i wlll -Bu* U , oplflfl -tl ought then to result. An. opor place tfl I ' "c portaat Oalda tor ita eora_n and antcrprtaa n aflfl 9* btv nartaa. Anmriean taattm n ,,t be eff.vtl.-l> those Bfltda unl. :?? we h.iv- '? I ,:,n banhfl Ifl the countriee ,, J u. aaad Aaxrlofl aaanaaa 3 eountrlflfl an.: propflf aaatn* foi , ? I ? ! m aboul thflhh 'A- i ",1 t0 H ?un the pflrmaaancy ol ? imln i mm i leglal.ttlon ei ibl Hfl II membera of the fi relgn ser\ lomatloally brougM in Mn i aontm with tho in.ii:strlal, IMflflf ir ozportlag Int* refltfl of thi o -der that /Unerieafl buflflw ? ?' !a*: oatcr lha f< relgn fie'.d nth ? I oflptlon of the flsaot .-on iiti. na to :e*. with und the QfltflflTI .-' 'n* proflflcuta their w..ik with a elear ? >a? what American :ndustr:_l a . ' in .i?* urlng Interaflta le.mire. Congreaa abould fiiiy rea:;.- i ? eam tions v n Ifl ih- * find ouraelvea al UM Mbrifll f I middio nga aa a itatlflfl Wi P full grown aa a Bflflg :n tht |Ti lt col ? ? of natioflfl. Wfl through rarioua tarai tlvfl i I bave been flelf-< entrod m t dovalop our doraeatlfl anflUrci ? :*( irlth ot.r don,. stic nue'tions ': ??? natlfl h now tOO n.ature to 'ontn dga relatlona thoaa la ipon op{e o vl affflin are tbfl aolfl ofl corn our dlptoxnacy hflfl ? ten fld?tfl4 '? not-aal tbnflfl, ln ? va\ r* flf to taternal oafll 'Xlst- '? now ln fl larger reUUon ? of our uflfl Mal ? ' i than ouraelflaa, A m guldlng prlndplofl wete la> ln the hlfltory ol thls gov. i;, ?? nt ?? recent task of our dip'oma. ndjust thoae : rinclp'e-* to Of to-day. to d.-velop heir flnd practkal ai.IlcaUmh c ,2 clples flspanded to nvei flew altuatlflj Thus are being e-ulv. whi.h can rest the nureratr cies which must grow iMfri lh< - - progrehs of tbla natlen. ' condoet of our toreign rela ona dernflflfl a broa.'. ind ? muderr viev. V.'* caflj moet aea quofltl -na mt bu-id for tba r? ure lf we contlne oureelv dogmas of the poat anc to i appropridte at our eciergcnce frora w lonlal tlmflfl -nd condltiona. Tha oi<nifl of ihe Panama CflMl wl? *>'?''- ,l " v e' ln our Internatloflfl* life flnd creata oet and world-wlde condltlon^ ?' b th.dr vaat correlatlMM and coneeqflflh*! wlll obtain for hundred^ of J eart I u,- muat noc wait for oflgflta to ovcrtaW ua unawarea. With cet?tln"..l> ot piirpflfl we must deal wlth the probfema of <* external relationa by a iUdomacy tnct ern, reaourceful, magnanimous and ? tlngly expresalve of the hlgh ul*-is ? ' great natlon.