The Acting Secretary of State to Minister Peirce.
Washington, July 22, 1910.
Mr. Wilson instructs Mr. Peirce immediately to hand to the minister for foreign affairs a copy of the following reply which has been sent in answer to inquiries from American companies and copy of which has been given also to the Norwegian chargé d’affaires in Washington with further explanation of the situation:
The Bluefields Steamship Co., as charterer of Norwegian steamers carrying American goods, and seven American firms as shippers have represented that the Norwegian Government has given instructions to Norwegian consuls with the result that agents and captains have been notified by Norwegian consular officers that the Government of Norway has been informed of the closing of the port of Bluefields, in Nicaragua, which is in the territory under the de facto control of the Estrada faction, by authority of orders made by the Madriz faction last October and on May 16, and that such agents and captains have been warned that the Norwegian Government can not protect them from any consequences which may follow in disregard of such orders of closure. These [Page 757] firms represent that this situation means the crippling of very important commercial and other American interests on these coasts.
Official reports just received from Bluefields seem to indicate that the reported action of Norway may have been based upon erroneous information. In the first place, it is now a well-settled and recognized principle of international law that ports in the possession of hostile forces can not be closed to foreign commerce by mere executive decrees of closure unless such decrees are followed and supported by effective blockades of the ports so closed. It would, therefore, seem that the reported Madriz decrees of October 13 and May 16, closing the port of Bluefields, are, in the absence of effective blockade at that port, devoid of effect or influence upon neutral commerce. In the second place, it would appear that even should a foreign government recognize the right of blockade by a ship of the character of the Venus, apparently the only blockading force possessed by Madriz, nevertheless as it is notorious that the Venus has, since her appearance at that port, been absent from Bluefields for long periods, on which occasions she is reported to have violated the rules of international law by bombarding other unfortified Nicaraguan towns, and also to have committed other acts of hostility, all so far from her base at Bluefields, it would appear clear that were the contemplated blockade of Bluefields ever effective, it has long since ceased to be so and is therefore without any value in international law, Blue-fields now being under these circumstances an open port.
As for the question of protection of American chartered ships and American cargoes by the United States, you are referred to the telegram from the Secretary of State to the Bluefields Steamship Co. under date of November 18, 1909: “If the announced blockade or investment of the Nicaraguan port of San Juan del Norte (Greytown) is effectively maintained and the requirements of international law, including warning to approaching vessels, are observed, this Government would not be disposed to interfere to prevent its enforcement. A naval vessel will be ordered to Greytown to observe and report whether the blockade is effective;” to the letter of the Secretary of State to the Secretary of the Navy, dated May 24, 1910, which contained the following proposed instruction to Commander Gilmer, which instruction was given: “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 Greytown 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 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.” Also the letter of the Secretary of State to the Secretary of the Navy of June 3, regarding a proposed instruction to Commander Gilmer, which instruction was also given: “This Government denies the right of either faction to seize American-owned vessels or property without consent of and recompense to the owners. In such cases, if you can ascertain ownership, you will instantly act in accordance with this policy.” And the letter from the Secretary of the Navy to the Secretary of State of June 7, containing the notifications issued by Commander Gilmer under date of June 3: “I received a communication to-day from Gen. Rivas, commanding Madriz forces, Bluefields Bluff, stating that certain vessels have been used by Estrada forces and that he would not permit vessels of Bluefields Steamship Co., Atlantic Navigation Co., Bellanger Co., and Cukra Co., all American companies, to pass through the waters held by Madriz forces. I informed him that Estrada had the right to use these vessels with consent of owners if properly remunerated, but while so used Rivas had the right to capture or destroy them; but when in the company’s legitimate trade I would permit no interference with them. I have ordered guard American marines or sailors on vessels passing Bluff when in legitimate trade. Have informed Rivas that if they were fired upon I would return the fire and would seize the Venus and San Jacinto and that I would permit no interference with shipping of American firms in legitimate business.”