Mr. Thompson to Mr. Gresham.

No. 74.]

Sir: If there is a precedent covering the conditions which have prevailed here since the inauguration of Mello’s revolution, on the 6th of September, I have not been able to find it. Over two months have elapsed and there seems to be at this time no indication of an early solution of the unhappy issues.

A remarkable feature of the conditions at the beginning of the revolution was the attitude of neutrality assumed and maintained for several weeks by one of the principal forts in the harbor, Yillegaignon, and also that of the naval school and arsenal situated upon the Ilha das Cobras, commanded by Admiral Saldanha de Gama, who also has possession of a gunboat. This admiral is reputed to be an avowed monarchist. It is said he does not hesitate to proclaim himself on all occasions in favor of the reestablishment of the Empire, and that he declined, for that reason, to accept appointment from the Republic. But while he claims to be neutral in the pending contest it is generally believed, and I have knowledge that confirms me in the opinion, that he is in sympathy with the insurgents, possibly in the hope that results favorable to the restoration of the monarchy may follow the overthrow of the existing Government. His status of neutrality has undoubtedly been of great advantage to the Mello movement. This, however, has not been noticed by the existing Government until the last few days. There is now talk of steps being taken to subject the command of Admiral de Gama to governmental authority. Such action will probably cause him to declare openly for the insurgents.

The situation has been an exceedingly difficult one to deal with and we have been fortunate in suffering no losses to this date, either in life, property, or commerce. The position taken by this legation at the outset with regard to commerce has just been applied by the joint action of the commanders of the foreign naval forces to all foreign commerce, and I feel assured we shall have no serious difficulty as long as that attitude is maintained.

Before the arrival of the Charleston diplomatic representatives of foreign nations having war ships in the harbor, viz, England, Italy, France, Portugal, and Germany, had conferred together with a view of preventing, if possible, the bombardment of the city of Rio. Agreeably to the terms of your cipher telegram of September 29, in response to [Page 74] an invitation received through the dean of the diplomatic corps, I conferred on the 2d of October with the ministers of England, France, Portugal, and Italy, and have advised you of all intermediary action taken to prevent further destruction of property and bloodshed.

I have, etc.,

Thos. L. Thompson.