Mr. Gresham to Mr. Thompson.

No. 78.]

Sir: As you are aware, the understanding between the foreign naval commanders and both the hostile parties at Rio, supplemented by the [Page 99] understanding between the foreign diplomatic representatives and the Government, has been that a bombardment of that capital would be averted so long as the Government afforded no pretext for an assault by fortifying the city of Rio or directing therefrom active hostilities against the revolted fleet and forts.

Under date of the 5th instant Capt. Picking reports the effective fortification and armament of strategic positions within the limits of the city, adding that the naval commanders in conference had thereupon agreed that in view of this action they could no longer maintain their intention to prevent bombardment. The facts reported appear to justify this conclusion.

An actual condition of hostilities existing, this Government has no desire to intervene to restrict the operations of either party at the expense of its effective conduct of systematic measures against the other. Our principal and obvious duty, apart from neutrality, is to guard against needless or illegitimate interference, by either hostile party, with the innocent and legitimate neutral interests of our citizens. Interruption of their commerce can be respected as a matter of right only when it takes one of two shapes—either by so conducting offensive and defensive operations as to make it impossible to carry on commerce in the line of regular fire, or by resort to the expedient of an announced and effective blockade.

Vexatious interference with foreign merchant shipping, at a designated anchorage, or with the lighterage of neutral goods between such anchorage and a designated landing, by random firing not necessary to a regular plan of hostilities and having no other apparent object than the molestation of such commerce, is as illegitimate as it is intolerable. Hence we have a right to expect and insist that safe anchorage and time and place for loading and unloading be designated, if practicable, to be interrupted only by notice of actual intention to bombard, or by notification and effective enforcement of blockade.

The insurgents have not been recognized as belligerents, and should they announce a blockade of the port of Rio the sole test of its validity will be their ability to make it effective.

Our naval commander at Rio has been instructed as above with regard to the protection of neutral commerce under our flag, which it would seem represents only a small part of the foreign commercial interests afloat in the harbor of Rio. The British ships there are said to outnumber those of the United States nine to one, but no substantial interference with our vessels, however few, will be acquiesced in, unless made effective with regard to all foreign shipping, and, moreover, so made effective in pursuance of some tangible plan of orderly military operations.

I am, etc.,

W. Q. Gresham.