The Secretary of State to Consul Moffat.

[Telegram.—Paraphrase.]

Mr. Knox states that in the light of recent occurrences, particularly in regard to cases affecting, American interests and property, it is appropriate that the revolutionary party should understand that the United States reserves all claims and rights growing out of acts or omissions of the revolutionary party to which this Government or its citizens may be entitled under international law, and that such timely reservation is not to be deemed to imply admission of a full state of revolutionary belligerency with the rights and obligations attaching thereto under the doctrines of international law. Mr. Knox refers particularly to the reported action of the revolutionary party in respect to the steamer Dictator which is under charter of the Bluefields Steamship Co., an American corporation, and says, this Government reserves all rights in respect to the validity of any proceedings against that vessel as a prize of war, and that if the vessel is actually held by the revolutionary party it is suggested that it be released under bond from the charterers to insure her departure from Nicaragua and to engage that she shall not attempt to enter any invested port after due notice and warning of effective investment.

Knox.