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In the same letter where he referred to Davis as president he also referred to the conflict as a civil war. No diplomats were assigned. No treaties or understandings. No recognition whatsoever.

So I'll repeat that not a single nation - including the Vatican States - extended diplomatic recognition to the Davis regime. Not one. None. Zip. Nada. Zero. The entire world agreed with the United States that it was not a war between co-belligerents but merely a rebellion by the southern states. The Davis regime could call itself sovereign if it wanted. You can call yourself Lord High Ruler of the Universe if you so desire. But unless someone starts bowing and calling you 'Your Majesty' then you aren't lord high ruler of anything. You're just another nut.

You can call yourself Lord High Ruler of the Universe if you so desire. But unless someone starts bowing and calling you 'Your Majesty' then you aren't lord high ruler of anything. You're just another nut.

You're normally pretty civil. Who p*ssed in your cornflakes?

The entire world agreed with the United States that it was not a war between co-belligerents but merely a rebellion by the southern states.

It is not necessary that the independence of the revolted province or State be acknowledged in order to constitute it a party belligerent in a war according to the law of nations. Foreign nations acknowledge it as war by a declaration of neutrality. The condition of neutrality cannot exist unless there be two belligerent parties.
[O]n the 13th of May, 1861, the Queen of England issued her proclamation of neutrality, recognizing hostilities as existing between the Government of the United States of American and certain States styling themselves the Confederate States of America.
This was immediately followed by similar declarations or silent acquiescence by other nations.
Whether the President, in fulfilling his duties as Commander-in-chief in suppressing an insurrection, has met with such armed hostile resistance and a civil war of such alarming proportions as will compel him to accord to them the character of belligerents is a question to be decided by him, and this Court must be governed by the decisions and acts of the political department of the Government to which this power was entrusted.
After such an official recognition by the sovereign, a citizen of a foreign State is estopped to deny the existence of a war with all its consequences as regards neutrals.
Justice Robert Grier, The Prize Cases, 67 US 635 (1862)

Lincoln recognized the Confederacy OFFICIALLY by blockading her ports.

In the same letter where he referred to Davis as president he also referred to the conflict as a civil war.

There is no necessary exclusion between granting recognition and noting the existence of a civil war.

No diplomats were assigned.

False. The confederate diplomats to the vatican were recieved at length and even taken in by a cardinal under diplomatic immunity when their yankee counterparts tried to have them arrested. The vatican continued making diplomatic contact and written exchanges witht the confederate ambassadors from the time of the letter to the war's conclusion.