"Knowing the importance of our relations with the great American nation it was a grateful duty to send a special mission to Washington with the sole object of congratulating President Roosevelt. For the discharge of this function Señor Jorge Muñoz was selected and he discharged it with entire satisfaction to the government. This mission having been disposed of he was accredited permanently as Envoy Extraordinary and Minister Plenipotentiary.

"Inasmuch as it was not one of the ancient nations of Europe, but a young and virile Republic, the strongest in America, which launched the project through its distinguished President of a second Hague Conference to perfect and complete the works of the first one in favor of universal peace, it is to be hoped that this effort will be seconded by all the countries of the civilized world and that at no distant time when experience shall have shown the deficiencies in the conclusions adopted by previous Congresses those which may be adopted in the coming Peace Conference will be more efficacious for the success of the humanitarian and praiseworthy end which the United States proposes."

Guatemala previously had given its adhesion to the principles of arbitration promulgated under The Hague Convention. It was represented in the Second International American Conference held in Mexico 1901-1902, and the various treaties and recommendations made by that Conference were ratified or endorsed as in the case of the other signatory governments. The action taken by the government of Guatemala on the respective conventions and recommendations was officially transmitted to Señor Mariscal, Secretary of Foreign Relations of Mexico, in accordance with the resolution of the Conference.

Pecuniary Claims Arbitration.

Among the treaties promulgated by the Pan-American Conference in Mexico was one relating to pecuniary claims. This required the ratification of five governments in order to make it effective. Guatemala was one of the first to give its formal adhesion to this convention. This treaty was ratified by the United States Senate and promulgated by the Department of State from Washington in the spring of 1905, so that United States citizens can now claim its benefits. The treaty consists of five articles. Under its terms the high contracting parties agree to submit to arbitration, through the Hague Court, all claims for pecuniary loss or damage which may be presented by their respective citizens and which cannot be amicably adjusted through diplomatic channels and when such claims are of sufficient importance to warrant the expenses of arbitration.

By virtue of Article 26 of the convention of The Hague the high contracting parties agree to submit to the decision of the Permanent Court of Arbitration established by that convention all controversies which are the subject-matter of the Treaty unless both parties should prefer that especial jurisdiction be organized according to Article 21.

If for any cause the Permanent Court of The Hague should not be opened to one or more of the high contracting parties they obligate themselves to stipulate in a special treaty the rules under which the tribunal shall be established as well as its forms of procedure.

In 1902 the administration of President Estrada Cabrera negotiated and the National Assembly ratified an agreement with Germany, Belgium, France, England, and Italy, which disposed of many subjects that had been in controversy.

Spain, the United States and Mexico did not enter into the agreement because those governments preferred to postpone the claims of their citizens until the industrial crisis was over and the financial conditions were improved. Since that time a number of claims have been adjusted satisfactorily. President Estrada Cabrera stated in a recent message that there were no claims at the present time which were weighing upon the national treasury. These matters having been arranged satisfactorily he said that no subject had arisen which could alter the friendly relations with the countries of Europe. This friendship was shown in the tribute paid by the Diplomatic Corps on New Year's day. Subsequently the governments of Germany and France had shown especial consideration by conferring on the President the Order of the Red Eagle and of the Legion of Honor respectively.

With Mexico the relations of Guatemala have been cordial since the boundary dispute was settled in 1895. Recently the commercial relations, on account of the construction of the Pan-American Railway through Mexican territory to the Guatemalan border have required the establishment of various consulates in important places in Mexico, and the exequaturs have been granted by the Mexican government.