Mr. Thompson to Mr. Gresham.

[Telegram.]

Mr. Thompson reports that business was resumed in the morning, the chamber of commerce showing no sign of unrest. The military operations were conducted by the President from the marine arsenal on the water front. White flags were displayed on Enxadas Island at about half past 3 on the preceding day. A launch sent by the President to the island found that all the insurgent forces were there except the officers, only one of whom, a surgeon, had remained with the men; all the others had sought asylum on board war vessels of Great Britain, France, and Portugal. The rebel war vessels and the islands of Villegaignon, Cobras, had been abandoned. He reports that the French cruiser Magon went out of the bay at 4 with Da Gama onboard, and that at about 6 the Government squadron, with the Nictheroy in the lead came into the harbor and anchored in front of the city.