Mr. Thompson to Mr. Gresham.

No. 39.]

Sir: I have the honor to acknowledge the receipt of your cipher telegram of October 12, and at the same time to confirm mine of even date in reply.

With reference to the entry and export of American goods, I decided, after conference with commanding officer of the Charleston, to notify our citizens to continue with the loading and unloading of their vessels, using the American flag upon lighters and launches. A notice was published, of which I inclose copy (Inclosure 1), and no report of any interference has reached me.

It is difficult under present conditions to fix the legal status of Admiral de Mello and the revolting squadron. No favorable demonstration has been made for them on shore. Almost a constant bombardment of Nictheroy opposite Rio has been kept up, and though the place is poorly provided with means of defense the insurgents have not succeeded even in getting a foothold there. No force has been landed at any point, and no response to their appeal for support has been made outside of the navy. They are insurgents without apparent responsibility or backing.

I have, etc.,

Thos. L. Thompson.
[Inclosure in No. 39—Notice published by Mr. Thompson.]

The envoy extraordinary and minister plenipotentiary of the United States of America to Brazil informs all American citizens engaged in commerce at this port that lighters, launches, sloops, harks, and all other means of navigation used in embarking or disembarking passengers or in loading or unloading freight, should carry the flag of the United States of America at the prow in order that their traffic may be performed safely and under the protection of American war vessels.

Such protection may be had by applying at the consulate-general of the United States of America, No. 20 Largo do Carioca, or, if necessity should require, on board the U. S. cruiser Charleston.