In truth, Pitt occupied a position intermediate between that of the incurably suspicious Carmarthen and of the pleased and rather self-conscious Eden. When the latter very speedily arrived at a preliminary agreement, or Projet, with Rayneval, and begged that it should be adopted as speedily, and with as few alterations as possible, Pitt subjected it to friendly but close scrutiny. His reply of 10th May has been printed among the Auckland Journals; but his criticisms were even more practical in a long letter of 26th May, which is among the Pitt Papers. The following sentences are of special interest:
The Principles on which the Projet is founded are undoubtedly those on which it is to be wished that this business may be finally concluded, both as they tend to the mutual advantage of the two Countries in their commercial intercourse, and as they include the abolition of useless and injurious distinctions. But on the fullest consideration it has not appeared to His Majesty’s servants that it would be proper to advise the immediate conclusion of a treaty on the footing of that Projet without some additions to it which may tend to give a more certain and permanent effect to these principles.... In addition to this, the Projet, as it now stands affords no security that general prohibitions or prohibitory duties may not at any time take place in either Country to the exclusion of whatever may happen to be the chief articles of trade from the other. It is true that the same motives which should guide both parties in the present negotiation might for a long time prevent their adopting a conduct so contrary to the spirit of the proposed agreement. But it cannot be the wish of either Court to trust to this security only. We ought by all the means in our power to remove even the possibility of future jealousy on these subjects. And it appears from the observations of the French Government on the first sketch of this Projet that they felt the force of this remark. There can therefore be no doubt of their readiness to concur in anything which can give it a greater degree of stability and certainty. And we shall probably arrive sooner at the great object—a solid and comprehensive settlement of the commercial intercourse between the two countries than by beginning with a Preliminary Treaty, unexceptionable indeed in its principles, but which would necessarily reserve some very important points for separate discussion, and would in the meantime leave the whole system incomplete and precarious.[486]
Pitt then pointed out to Eden that the discussion of a compact of a temporary nature would tend to unsettle the minds of traders and perhaps even to discredit the whole undertaking. Accordingly he enclosed a Declaration, which comprised the substance of the French Projet, but gave it a more permanent form and set limits to the duties which might thereafter be levied. The letter shows that he had got over his first suspicions and was now working for a more thorough and permanent settlement than that sketched by Rayneval. The draft of the British Declaration is in Pitt’s writing—a proof that he had taken this matter largely into his own hands. The replies of Eden to him are both long and frequent; but most of those preserved in the British Museum are too faded to be legible. In that of 6th June he warned Pitt that France was ready to settle matters on friendly terms, but, as there were many intrigues against the treaty, Pitt should conclude it promptly. More favourable terms might possibly be gained for British cottons and steel; but it would be best not to press the Versailles Cabinet too hard.[487]
Pitt, however, refused to hurry matters. Indeed, the only part of this long effusion which he heeded, seems to have been that respecting steel and cottons. He further distressed Eden by his action with regard to silks. Under pressure from the London silk-workers, he found it necessary to continue to exclude all foreign silk-goods,[488] which caused Eden to remark on 17th June: “With what face I am to propose the admission of English cottons and the exclusion of French silks I do not well foresee.”[489]
Most of the official letters between Pitt and Eden will be found in Lord Auckland’s Journals. We will therefore glance only at some of their letters which have not been published. They show that Pitt sought by all possible means to lessen the duties on British cottons and hardware imported into France, and that he demurred to the abrogation of the Methuen Treaty with Portugal (1703) which had accorded to her wines exceptionally favourable treatment. Discussions on these and other topics were retarded by the long debates at Westminster concerning the Sinking Fund and Warren Hastings: so that on 13th July Eden ironically informed Pitt that all his letters to him since 10th June had miscarried. The close of the session (11th July) left Pitt freer for diplomatic affairs; he threw himself into the bargaining with much zest, and Eden more than once hinted that a great outcry would arise in France if their Ministers gave way to our demands.
Nevertheless, Pitt struggled hard to obtain the best possible terms not only for Great Britain but also for Ireland. Despite Eden’s repeated appeals for urgency, he asked the Duke of Rutland, Lord Lieutenant of Ireland, to induce the Irish Chancellor of the Exchequer, the Speaker, and Beresford to come to London for the purpose of advising him on several matters that concerned Ireland, especially as to the admission or exclusion of French linens. This further delay wrung Eden’s heart, and he wrote on 31st August: “Your political courage goes beyond mine, for I suppose that you look without anxiety on this fortnight’s delay, which we are giving. In truth, if it is given in politeness to Ireland, it is a great compliment; for it is impossible to do more for Ireland than we have done.”[490] He then made the noteworthy prophecy that, as the treaty could not possibly adjust all the topics relating to the trade of Britain and Ireland, it would lead up to a right settlement between the two islands. Certainly Eden equalled Pitt in foresight, however much he fell short of him in coolness, determination, and bargaining power.
These qualities appear very forcibly in the Anglo-French negotiation. It is probable that Pitt bargained too closely; but the reason is apparent if one looks at the scores of petitions that reached him from alarmed manufacturers. Lancashire was well to the front in its demands for favourable terms; and we therefore find Pitt holding out for only a 5 per cent. duty in France on British cottons. To this Rayneval retorted by claiming at least 20 per cent.—“M. de Vergennes was of opinion,” wrote Eden, “for 15 per cent., and M. de Calonne, after much dispute, and by the aid of a paper in which I had urged for 5 per cent., split the difference and carried it for 10 (but with great doubts).”[491] Calonne, the cheerful and prodigal Controller of Finances, now began to take a closer interest in the treaty; he inveighed against Pitt for prohibiting French silks while expecting the almost free entry of British cottons, and said that there were 60,000 workers at Lyons who would curse him for this treaty. This explains why the French negotiators once again held out for 15 per cent., and, when that was rejected by Pitt, finally fixed it at 12 per cent.
Pitt also struggled to gain easier terms for Irish linens in France, and suggested that if this were conceded, the Dublin Parliament would probably accept the Anglo-French treaty in toto.[492] On the subject of hardware Pitt fought for the interests of Birmingham, as appears in the draft of a long despatch to Eden, of 4th September, with many corrections and additions in his writing. Very significant is the last sentence, which is in his hand:
If you cannot obtain a reduction to 5 or 7½ per cent. on iron, copper, or brass, you will endeavour to gain it on iron alone, that being a point which H.M.’s servants have most earnestly at heart, and in which the reasoning above stated seems conclusive in our favour. This is a point to be pressed to the utmost, but if you should find it absolutely impossible to carry it, it should not ultimately prevent your signing the treaty.[493]
The treaty, signed at Versailles on 26th September 1786, may be thus summarized: It granted complete freedom of navigation and trading rights between the two nations for their European dominions. The subjects of either kingdom were thenceforth free to enter the lands of the other without licence or passport, and free of any capitation tax—a privilege most unusual in those days—and to enjoy perfect religious liberty. In regard to the most important of French exports, namely, wine, Great Britain agreed to place her neighbour on the footing of the most favoured nation by lowering the duties to the level of those imposed on Portuguese wines. The duties on French vinegar and oil were also greatly reduced. The following articles nominally concerned both nations, but in practice applied almost entirely to British imports into France. Hardware, cutlery, and similar goods were not to pay more than 10 per cent.; cottons, woollens, muslins, lawns, cambrics, and most kinds of gauzes, not more than 12 per cent.; but silks, or articles partly silken, were prohibited as formerly. Linens were reciprocally to be charged at no higher rates than those levied on Dutch linens imported into Ireland, that is, at “the most favoured nation” rates. Sadlery, porcelain, pottery, and glass of all kinds, were to pay no more than 12 per cent. The highest impost retained was 30 per cent., levied on beer, perhaps because the interchange of that product was certain to be small. Countervailing duties might, however, be placed on certain articles. In the concluding forty articles of the treaty (one of the longest and most complex ever signed), the contracting Powers sought to lay down principles or regulations for the avoidance of disputes with respect to contraband and prohibited goods, smuggling, privateering, the suppression of piracy, and other subjects. They also left themselves free to revise the treaty at the end of twelve years. It is noteworthy that each of the contracting Powers affirmed the principle of seizing and confiscating the goods of the other Power when found on an enemy’s merchantman, provided that they were embarked after the declaration of war.[494]