File No. 837.00/1170

[Untitled]

I am without definite information from the Department as to what naval authorities are authorized to do in making terms with rebels. Radio reports from San Francisco indicate clearly that general amnesty is taken for granted and promises about elections authorized by native citizens.

My recommendation of week ago was that intolerable condition in Santiago be remedied by the United States forces occupying town and controlling situation. Port could then be opened without danger of rebels getting ammunition or the customs duties and as United States prevented Cuban armed forces entering harbor to retake city it seems most logical act.

If given opportunity believe rebel officers in Santiago would surrender to United States naval commander and enlisted men would take advantage of amnesty already offered. The officers could rely on good offices of the United States to save them severe punishment. Rebel officers Santiago have already taken half million dollars or more Government funds.

Gonzales