SETTLEMENT OF DISPUTES WITH SPAIN.
The British government, desirous of avoiding hostilities, dispatched Mr. Fitzherbert to Madrid, with full powers to settle all disputes between the two nations. At first the Spanish court showed itself adverse to negociation, and applied to that of France for aid. The court of France, however, though willing to support the Bourbon compact, had lost the power, for the people, by whom it was now kept in awe, were averse at this time to a war with England. Unable to contend with the British arms alone, Spain was therefore compelled to comply with the demand of restitution and indemnification: on the 2nd of October a convention was signed at the Escurial, by which every point in dispute was conceded. The settlement at Nootka-Sound was restored; the free navigation and right of fishery in the Southern Pacific were confirmed to Britain; and a full liberty of trade and even of settlement was granted to all the north-west coasts of America, beyond the most northerly of the Spanish territories, though unaccompanied by any formal renunciation of their right of sovereignty. Both nations were equally restricted from attempting to form any settlement nearer to Cape Horn than the most southerly plantations already established by Spain. It was also agreed, that, in case of any future complaint, no violence should be committed, but recourse had to an amicable adjustment between the respective courts. This convention was generally applauded in England, though £3,000,000 had been expended in warlike preparations.