We study the initial-value problem for a system of nonlinear equations that models the flow of an inviscid, incompressible, barotropic fluid with capillary stress effects. We prove the global-in-time existence of a unique, classical solution to this system of equations, with a small initial velocity gradient. The key to the proof lies in using an $L^2$ estimate for the density $ ho$, and using
... [Show full abstract] the smallness of the initial velocity gradient, to obtain uniqueness for the density.