of nature, it is nevertheless a great pleasure to meet you here and have the advantage of your personal acquaintance.

The importance of the geographic position of Honduras, which borders on three of the other Republics of Central America, has long been recognized, and experience has shown that most of the unrest that has disturbed Central America, and particularly Honduras, has been due to the fact that Honduras lies conveniently in the track of any armies of other contending Central American states and it has been impossible for Honduras to resist their passage without itself becoming engaged in the quarrel on one side or the other. So much has the Republic of Honduras suffered in this regard and so often has the peace of Central America been easily disturbed, owing to the exposed position of this country, that when the Central American Peace Conference met in Washington in 1907, under the auspices of the United States and Mexico, an article was incorporated in one of the conventions there signed whereby all the other powers concerned pledged themselves to respect the neutrality of Honduras. The importance and wisdom of the provision has been fully demonstrated, and an eloquent testimonial as to its practical value is that since the adoption of these conventions, although other of its provisions may have been disregarded, there has been no international war in Central America.

Probably one of the most important matters to be considered by the Honduran Government is how to make this guaranty, which is all important to the peace of Central America, still more effective and permanent. It is manifest that it is only as strong as the stability of the country and the good will of its neighbors combined, and that the surest means of insuring its continued respect and resultant benefits is to assure the stability of the Government of Honduras itself and thereby to permit the development of its wonderful store of natural resources.

Possessed, as it is, of a fertile soil and healthful climate, as well as of probably the best natural harbor between San Diego, California, and Concepcion, Chile, the development of Honduras would seem to be a matter which it should require but a short time to accomplish. In Honduras, all the elements of great national prosperity are but awaiting development. The great needs of the country, so great in natural wealth, are facilities of transportation, which will at once stimulate foreign and domestic commerce, and an economic administration.

Central American tranquillity and security have from the first been matters of the deepest concern to the United States, and repose in Honduras, which will always be the key to Central American peace, has ever awakened the keenest interest among Americans. When the transcontinental railroad from the Atlantic to the Pacific. was first undertaken the sovereignty of Honduras over the railroad was guaranteed by the United States, and my Government has always stood ready to assist in any proper manner the preservation of order and the promotion of peace in this country. The Marblehead treaty, the convocation of the Central American Peace Conference in Washington, and the part played by my Government in the Peace Conference at Puerto Cortes in February, 1912, are all eloquent testimonials of our good will toward Honduras.

It is the desire of my Government to perpetuate upon the foundations of closer friendship and acquaintance the good will we have received from the past, to promote our common interests by developing a better mutual understanding, and to frown down any and every attempt to disturb by calumny and baseless suspicion the peaceful and friendly relations between the United States and Honduras.

Speech of Mr. Knox at a luncheon given by him on board the Maryland" at Amapala, Honduras, March 9, 1912.

LADIES AND GENTLEMEN: I wish, on my own behalf and on behalf of my party, to express our appreciation of the friendliness and hospitality that we have received since we have been here, and this afternoon I want to especially acknowledge our appreciation of that test of good will which is evidenced by the long journey that those among you have made from the capital city to the coast under most trying circumstances. I do not know of a higher test of friendship than the one which you have thus given us. Our reception in Honduras has been especially pleasing. Indeed, I might almost say that nothing could excel the kindliness that has been shown to me and to my party since we reached Central America. There is one thing that I can imagine might excel it, and that is the malice and wickedness with which those who desire to prevent closer relations between the United States and Central America have, through false reports, endeavored to create the impression that the Central American people have not received this mission with kindliness and with sympathy. When I get back to my Government my report shall be that up to the time that we have left Amapala not a single incident has marred the pleasure of our visit, not a single thing in the way of bounteous and generous hospitality has been lacking, and that we shall all feel that this visit has been worth much to us and we hope it has been worth something to you. As I started out to say, I want this afternoon to express my special appreciation to those who have come from Tegucigalpa here to meet us, and I propose their health, their long life, their prosperity, and their happiness.

Reply of Mr. Vásquez, Minister for Foreign Affairs.

[Translation.]

MR. SECRETARY: With enthusiasm I have transmitted to the President of the Republic the expressions of cordiality addressed by you to him and to Honduras.

The entire country will receive with satisfaction your friendly words, which reveal the wise policy of the acts of the Government of the United States.

The convention written on board the Marblehead, which put an end to a conflict among the States of Central America; the treaty of Washington, which stipulated the neutrality of Honduras and removed the dangers of fresh international disturbances; and the

Puerto Cortes conferences, which extinguished the civil war recently kindled in our country-all through the amicable mediation of your country-prove that you are interested in our welfare, which naturally must emanate from peace, and that on all occasions you have. advised us well.

At the very moment that you hear the tumult of our fruitless strife we hear your voice urging us toward concord and peace.

With such antecedents it is impossible for Honduras to welcome any malevolent propaganda which might disturb the relations it cultivates with the United States or the gratitude it owes to your Government.

On the contrary, we are endeavoring to make those relations even more intimate and to attract a useful immigration, which, by establishing business interests, will strengthen them day by day.

Honduras, sir, desires peace, a stable and lasting peace, in order to develop by means of salutary work all the elements of life which it has in abundance. Consequently, in order to attain this desired end, it must not look to those countries for inspirations which, more or less, have always lived under the scourge of war, but it must take its example from your Republic, which is rich, powerful, and great, owing to the peace and order so wisely maintained since the first days of its independence.

I bear special instructions from the President of the Republic to express these sentiments of frank cordiality and of the mutual interest of our countries. And both he and each one of us are deeply sorry that you have been unable to observe our country at closer range. Our land is essentially mineralogical and is likewise capable of growing productive plants of every zone; therein are forests rich in precious woods, rivers flowing over sands of gold. With your sagacious eye you would have seen the land where a people now debilitated by misfortune will soon be transformed, through the efforts of its sons, into a rich and prosperous nation by the fruitful agency of toil, and then you would have been convinced of the sincerity of our desire of peace.

With unfeigned regret we learn the news of your proximate departure. So numerous have been the demonstrations of cordiality with which you have distinguished us, and such the affection you have awakened in each one of us, that in pressing your hand for the last time we shall truly regret the separation.

We wish you, your family, and party a happy voyage, and it is a pleasure for me to assure you that we shall ever remember the happy moments when we had the satisfaction of having on our shore the cultured and distinguished Mrs. Knox and the trained diplomat who guides the destinies of the great Republic.

File No. 033.1100 K77/212.]

The President of Honduras to the President.

GREAT AND GOOD FRIEND: The Government of Honduras, gratified with the visit which his excellency the Secretary of State of the United States of America, Mr. Philander C. Knox, made to this

Republic last March, which Honduras considers to evidence the perfect harmony and friendly relations existing between the two countries; and desiring to express to the Government of the United States the grateful appreciation by Honduras of that significant display of cordiality-I have accredited Doctor D. Alberto Membreño as Envoy Extraordinary and Minister Plenipotentiary of Honduras, on Special Mission to the Government over which Your Excellency presides.

The commendable qualities that distinguish Doctor Membreño, and his sympathies for that great Republic, cause me to hope that he will be cordially received by Your Excellency's Government.

With the heartiest wishes for the increasing prosperity of that Republic and for the personal welfare of Your Excellency, I am Your Excellency's

Loyal and good Friend,

NATIONAL PALACE,

Tegucigalpa, June 5, 1912.

MANUEL BONILLA.

File No. 033.1100 K77/212.]

The President to the President of Honduras.

DEPARTMENT OF STATE,
Washington, July 5, 1912.

GREAT AND GOOD FRIEND: I have received from the hands of Señor Doctor Alberto Membreño Your Excellency's letter of the 5th of June last, in which you gave expression to the pleasure which the people of Honduras felt at the recent visit to your capital of Philander C. Knox, Secretary of State of the United States of America.

I cordially reciprocate the sentiments of friendship and good will which you in the name of the people of Honduras conveyed to me, and I assure you that the Government and people of the United States appreciate the friendly spirit shown towards the United States by the kindly and courteous manner in which Mr. Knox's visit was received.

WM. H. TAFT.

ITALY.

TERMINATION OF THE WAR BETWEEN ITALY AND TURKEY.1 SOVEREIGNTY OF ITALY OVER LIBYA. EXTRATERRITORIAL RIGHTS OF THE UNITED STATES.

File No. 765.67/409.

The Italian Chargé d'Affaires to the Secretary of State.

No. 1635.]

ITALIAN EMBASSY, Washington, October 18, 1912.

MR. SECRETARY OF STATE: By order of the King's Government I have the honor to announce to your excellency that the state of war between Italy and Turkey has terminated by the conclusion of a treaty of peace signed at Lausanne on October 18th instant between plenipotentiaries of the two nations.

The Turkish Government having pledged itself by this treaty to immediately withdraw its troops from Tripoli and Cyrenaica, which by the law of February 25, 1912, have been subjected to Italian sovereignty, I have the honor to ask your excellency on behalf of my Government to have the United States recognize the sovereignty of Italy over Tripoli and Cyrenaica.

Please accept [etc.]

G. CATALANI.

File No. 765.67/397.

The Acting Secretary of State to the Ambassador of Italy.

DEPARTMENT OF STATE, Washington, October 21, 1912. SIR: I beg to acknowledge and to thank you for your note of October 16th,2 informing the Department of the signing of preliminaries of peace between Italy and Turkey, and your note of October 18th, announcing, by order of the Italian Government, that the state of war has been terminated by the conclusion of a treaty of peace.

The Government of the United States is much gratified to learn that the difficulties heretofore existing between Italy and Turkey have been concluded by a treaty of peace signed at Lausanne on October 18th, between the plenipotentiaries of the two nations. Accept [etc.]

ALVEY A. ADEE.