Mr. Thompson to Mr. Gresham.

No. 141.]

Sir: With regard to the situation of affairs touching the revolution there has been but few happenings of any importance since my dispatch to you of the 12th instant (No. 134), with the exception of what appears to be a disastrous defeat of the revolutionary forces in the south. But, as I have before stated, information from the outside comes entirely through agencies controlled by the Government, and is, no doubt, often colored in its interests.

[Page 115]

The return of the Aquidaban to the bay of Rio de Janeiro, which was reported (No. 134) January 12, has given to the insurgents renewed confidence, and they have been much more aggressive. An attack upon the Island of Mocangue resulted in a severe defeat to the Government forces and the abandonment of the island. The position gained, however, is of no particular importance. The repeated assaults of the insurgents upon Nictheroy have thus far been repulsed, but great damage has resulted to both life and property.

The victories of the Government forces in Rio Grande do Sul culminated on the 8th instant when the siege of Bage was raised. The revolutionists were disbanded and fled, without ammunition and poorly horsed. The reports show that constant and incessant fire was kept up for eighteen days, during which the Government losses were 36, while the revolutionists lost over 400; besides, it is claimed 500 from Uruguayan bands deserted. The city of Bage was very much damaged, and many atrocious crimes said to have been committed. In one instance two soldiers were burned to death. No report of the troops sent in pursuit of the retreating revolutionists has been received.

The absence of Admiral Mello from the scene of hostilities has given currency to rumors that he has abandoned the insurgents’ cause, and that Admiral Saldanha da Gama has assumed command of the entire force. The truth of this, however, cannot be ascertained; another report indicates that he is at Desterro very ill with disease, beriberi, or suffering from wounds received while leaving the harbor on the 1st of December. It is positively known that the disease beriberi was prevalent on the Aquidaban at the time of her departure and that Admiral Mello did not return with the vessel.

Commercial operations in the harbor have been carried on without any serious interference with American interests. The English have had trouble with their coal interest, and Admiral Saldanha da Gama has issued orders preventing the landing of coal. This of course has caused loss to English merchants engaged in this trade. I have, however, just received from Mr. Wyndham, British minister, a note stating that he has received from the English commandant information of a conference of the foreign naval commanders, in which it was decided that they would oppose the undertakings of the insurgents to prevent the landing of coal, but as several of the commandants were without instructions authorizing the use of force against force, positive action was delayed until their Governments could be communicated with. If this policy is again instituted it will be a return to the spirit of the notice given by the commanders to Admiral Mello on the 6th of November, and for which I have contended since the commencement of the revolt, as will be seen from my dispatch No. 122, December 31, 1893, and which is, I believe, fully authorized by your instructions.

I have, etc,

Thos. L. Thompson.