TO THE COMMITTEE OF FOREIGN AFFAIRS.

Paris, July 1st, 1778.

Gentlemen,

I enclose you some extracts, by which you will see, that war is not yet declared, though on all hands it appears to be fast approaching.

The Spanish flotilla is not yet arrived, nor their fleet from South America. Since my last, a French frigate of twentysix guns was attacked by an English frigate of twentyeight, off Brest, and after an obstinate engagement the latter made off, and soon after sunk! This has given great spirits to the French marine and nation, and is more especially fortunate, as the English were the aggressors. Admiral Keppel is before Brest, with twentythree sail of the line, where I believe he will not remain long unattacked. Permission is given to French subjects to fit out privateers; and orders are sent to all the ports to prepare our prizes to be sold. From London, the Ministry have offered us an exchange of prisoners, which we are taking the necessary measures to embrace.

By some unaccountable neglect the person, to whom Dr Franklin committed the printing of the bills resolved on for the loan, has not furnished them, so that nothing further is yet done in that business. But I hope you will soon have news of its further progress, and that some event will happen to furnish us with a very favorable moment for its execution.

I have the honor to be, &c.

ARTHUR LEE.

Mr Lee presents his respects to his Excellency Count d’Aranda, and begs he will have the goodness to forward the packet, addressed to Count de Florida Blanca, which he has the honor of enclosing him, and which is on business of the last importance, by the first opportunity to his Court.