The Secretary of State to Consul Moffat.

[Telegram—Paraphrase.]

Mr. Knox instructs Mr. Moffat to hand to Dr. Madriz, who has addressed a telegram to the President, the following, which he may also make public. Adds that this statement has been communicated to the Estrada faction at Bluefields.

The policy of the United States remains as set forth in the Secretary of State’s letter of December 1, 1909, to Mr. Rodriguez, then chargé d’affaires, whereby relations with the Zelaya Government were broken off. That letter and statements of the consistent applications of the same policy to conditions as they arose were duly published.

As to the statements made in the telegram of Dr. Madriz to the President, the Government of the United States took only the customary step of prohibiting bombardment or fighting by either faction within the unfortified and ungarrisoned commercial city of Bluefields, thus protecting the preponderating American and other foreign interests, just as the British commander had done at Greytown, where there are large British interests.

The Government of the United States has acknowledged the right of each faction to maintain blockade, but has refused to permit vessels illegally and clandestinely fitted out in American waters to interfere with American commerce.

The Government of the United States simply insists that each faction shall collect duties only for territory under its de facto control and refuses to permit the collection of double duties.

If any violation of neutrality has occurred it was in connection with the sailing the Venus from New Orleans as an expedition of the Madriz faction.