The Secretary of State to Consul Olivares.

[Telegram—Paraphrase.]

Mr. Knox says that the following paraphrase of the pertinent part of instructions telegraphed to-day to Commander Gilmer is sent to him to be made known to the Madriz faction:

The United States policy as to the blockade at Bluefields, whose announcement by the Madriz faction would seem to constitute a recognition on their part of the belligerency of the Estrada faction, will naturally be the same as that laid down in regard to the blockade at Grey town1 by the Estrada faction. The Secretary of State then held that if the announced blockade or investment was effectively maintained and the requirements of international law, including warning to approaching vessels, were observed the United States Government would not be disposed to interfere [Page 747] to prevent its enforcement, but reserved all rights in respect to the validity of any proceedings against vessels as prizes of war. In the present instance it should, however, be observed that a vessel which, by deceiving the authorities at a port of the United States, sailed therefrom in the guise of a merchantman, but had in reality been destined for use as a war vessel, by such act has forfeited full belligerent rights, such as the right of search on the high seas and of blockade.

Adds that a corresponding telegram has been sent to the consulate at Bluefields.