Naturally this action did not pass unnoticed by the United States government. On July 16, the Secretary of State, Hamilton Fish, informed the Spanish minister at Washington that Rodas's decree of July 7 interfered with the commerce of the United States in a manner which could only be tolerated in times of war; that the United States would maintain her right to carry contraband in times of peace, and would permit no interference with her vessels on the high seas, except in time of war; that if Spain was in a state of war with Cuba it was incumbent on her to proclaim the fact; and further adding that the United States would regard any attempt to enforce Rodas's decree as a recognition by Spain of the existence of a state of war in Cuba, and would govern itself accordingly. Spain was in no position and had no desire to declare Cuba in a state of war. Such action would wrest from her certain advantages which in her present ambiguous position she was prepared to enjoy to the utmost. She at once recognized that Rodas's action was entirely too arbitrary, and might be productive of a most embarrassing situation, and therefore acting under instructions from the Spanish government, he at once receded from his arrogant position and his decree was materially modified. American commerce with Cuba had been exceedingly profitable to those engaged in it, and, under the disturbed condition of affairs in the island, not only did it suffer, but the commercial interests of American residents in Cuba were badly jeopardized. General Grant still nursed his secret good will toward the cause of the revolutionists, although the advice of his Secretary of State had put a temporary restraint on it. It may be that this new indignity which Spain had sought to impose not only on the insurgents but also on American interests spurred him to action. However, that may be, when Daniel E. Sickles was appointed United States Minister to Spain, on June 29th, 1869, he was instructed at once on his arrival in Madrid to offer to the Spanish government the good offices of the United States in an effort to bring about an understanding and adjustment between the revolutionists and the governmental party and to effect a cessation of the hostilities which were rapidly ruining both the Creoles and the Spanish landowners alike. Sickles received the most careful instructions to proceed in a conciliatory fashion, and in no manner to imply any recognition by the United States of the belligerency of Cuba. To guide him in his work, terms were drafted as a basis for the negotiations and they embodied the following points: 1. The acknowledgment by Spain of the independence of Cuba. 2. Cuba to pay Spain an indemnity under conditions to be thereafter agreed upon. In case such sum could not immediately be paid in full, the unpaid portion to be secured by the pledge of export and import duties, in a manner to be agreed upon. 3. The abolition of slavery in the island of Cuba.