On the 1st of December 101,165 officers and men had been mustered out and discharged from the service, and 9,002 more will be mustered out by the 10th of this month; also a corresponding number of general and general staff officers have been honorably discharged the service.

The military commissions to superintend the evacuation of Cuba, Puerto Rico, and the adjacent islands were forthwith appointed—­for Cuba, Major-General James F. Wade, Rear-Admiral William T. Sampson, Major-General Matthew C. Butler; for Puerto Rico, Major—­General John R. Brooke, Rear-Admiral Winfield S. Schley, Brigadier-General William W. Gordon—­who soon afterwards met the Spanish commissioners at Havana and San Juan, respectively.  The Puerto Rican Joint Commission speedily accomplished its task, and by the 18th of October the evacuation of the island was completed.  The United States flag was raised over the island at noon on that day.  The administration of its affairs has been provisionally intrusted to a military governor until the Congress shall otherwise provide.  The Cuban Joint Commission has not yet terminated its labors.  Owing to the difficulties in the way of removing the large numbers of Spanish troops still in Cuba, the evacuation can not be completed before the 1st of January next.

Pursuant to the fifth article of the protocol, I appointed William R. Day, lately Secretary of State; Cushman K. Davis, William P. Frye, and George Gray, Senators of the United States, and Whitelaw Reid to be the peace commissioners on the part of the United States.  Proceeding in due season to Paris, they there met on the 1st of October five commissioners similarly appointed on the part of Spain.  Their negotiations have made hopeful progress, so that I trust soon to be able to lay a definitive treaty of peace before the Senate, with a review of the steps leading to its signature.

I do not discuss at this time the government or the future of the new possessions which will come to us as the result of the war with Spain.  Such discussion will be appropriate after the treaty of peace shall be ratified.  In the meantime and until the Congress has legislated otherwise it will be my duty to continue the military governments which have existed since our occupation and give to the people security in life and property and encouragement under a just and beneficent rule.

As soon as we are in possession of Cuba and have pacified the island it will be necessary to give aid and direction to its people to form a government for themselves.  This should be undertaken at the earliest moment consistent with safety and assured success.  It is important that our relations with this people shall be of the most friendly character and our commercial relations close and reciprocal.  It should be our duty to assist in every proper way to build up the waste places of the island, encourage the industry of the people, and assist them to form a government which shall be free and independent, thus realizing the best aspirations of the Cuban people.