The Mosquito shore, a tract of country which lies along part of the northern and the eastern shore of Honduras, has been claimed by the British. The English held this country for eighty years, and, abandoned it in 1787 and 1788. The Spaniards call it a part of Honduras, which it really is, and claim it as such. It is an unhealthy, hot country, inhabited chiefly by a race of people called the Mosquito Indians, who are excellent marksmen, and of a warlike disposition. They are employed by the British to strike the manati, or sea-cow, for the sake of the oil it affords, and bear an invincible hatred to the Spaniards, being much attached to the English; as they were so cruelly treated on the conquest of this part of the country by the former people, that they have never forgiven it, and they do not acknowledge any allegiance to them. Their ancestors, after long and exterminating contests with the Spaniards, retreated into the mountains, and there remained till the English took possession of the Mosquito shore.

When the Duke of Albemarle was governor of Jamaica, they put themselves under his protection, and their king had a commission granted him from Great Britain. It is asserted that since that time the new monarch always goes to Jamaica to receive this document; and that the Mosquito Indians, his subjects, refuse to acknowledge his power till he does so. They trade with, and are frequently in the habit of crossing to Jamaica. The Spaniards are said to have no settlements on the Mosquito Shore; which name has been given to this country, partly from the Indians, and from a bank and cluster of islands which lie near it, in 14° 30ʹ north latitude, and 82° 10ʹ west longitude.

The Mosquito Indians were formerly a very powerful and numerous race of people; but the ravages of rum and the small-pox have diminished their numbers very much. They inhabit, however, nearly the whole coast of Honduras; and their most numerous tribe exists near the Cape Gracios á Dios. This tribe has, however, been the subject of many enquiries and disputes, as they differ in their persons from the other natives, and it is confidently said by many authors that they are the descendants of the slaves of a Guinea ship, which was wrecked near this Cape. They are called the Samboc Mosquitoes. Cape Gracias á Dios was the place where the British first established themselves in the Honduras territory, upon the banks of a navigable river, where the country is very fertile, and the harbour, formed by an inlet of the sea, is safe and commodious. This happened in 1730. They also fixed a colony about 78 miles from Cape Honduras, the colony at Cape Gracios á Dios being 162 miles distant. Seeking farther southward, at Bluefields River, 210 miles-from the first colony, they found a fine harbour, an extensive river, and a natural situation for a fort, with spacious, beautiful and fruitful plains.

The bay of Honduras, so celebrated for its trade in logwood and mahogany, is situated between Cape Catoche, the north-eastern most point of the province of Yucatan, and Cape Honduras. The land in the neighbourhood of this bay is inhabited by the Mosquito Indians. The English factories in 1769 amounted to 200 whites, the same number of people of colour, and 900 slaves. They exported to Jamaica, mules, &c. and to Europe, 800,000 feet of mahogany, 10,000 pounds of tortoise-shell, and 200,000 pounds weight of sarsaparilla. This trade was much damped by smuggling: but in the year 1763 Great Britain obtained the privilege of the logwood trade. They have lately discovered that the Campeachy wood of Yucatan, which grows on drier ground, is better, and of a closer grain, than the Honduras wood: but the price of the former had been so long kept up, that the latter trade was the most flourishing. The best mahogany is now cut in Yucatan.

The climate of the Honduras is superior to that of the West Indies; the sea-breezes being regular during the whole of the year, excepting in April, May and June, when the heats of summer prevail; but the mean heat is 30°.

Balize is the chief and only settlement of the British which is worth mentioning, situated at the mouth of a river of the same name, and consists of 200 habitations built of wood, and elevated on pillars. The shops, magazines, or offices, are on the ground-floor, and the habitable parts in the upper. The two floors have each piazzas, to which the people retire, from the heat of their inner apartments. The river on which Balize is situated, is navigable for boats 200 miles up the country, and the wood cutters proceed to that distance, in search of their article. The agriculture of this country has been neglected, on account of the wood trade, though the soil would produce the West Indian commodities of sugar, coffee, or cotton, with rice and Indian corn in great abundance. The British government appoint an officer to the command of this station, who is usually an officer of some rank in the army.

Many of the turtle which are caught here, are exported to England; and the hawks bill (a particular kind) is consumed in the settlement; its shell being an article of the commerce of Honduras. The bay of Honduras is full of shoals, rocks, and islands, which make its navigation dangerous. The fog, which is prevalent during the northerly winds, increases the difficulty, and the currents on the coast are very uncertain.

The introduction of British manufactures has been impeded into the adjacent Spanish settlements by the jealousy of the Spaniards; but it is probable that it may in time become a very valuable station.

The British government grant a convoy in January and July each year to the Honduras traders; and the annual revenue of the settlement is stated at about five thousand pounds.

The Mosquitoes who have fallen under the observation of the British settlers, seem to have no other religion than the adoration of evil spirits; and their conjurers are in fact the priests, the lawyers and the judges. Polygamy is practised; and all domestic offices are performed by the females.