Mr. Sherman to Mr. Hay.

[Telegram.]

In the event of hostilities between United States and Spain, the policy of this Government will be not to resort to privateering, but to adhere to the following recognized rules of international law: First, the neutral flag covers enemy’s goods, with the exception of contraband of war; second, neutral goods, with the exception of contraband of war, are not liable to capture under the enemy’s flag; and, third, blockades in order to be binding must be effective.

Sherman.