Madrid, October 29th, 1782.

Sir,

The state of uncertainly in which every one here has been for some time, respecting the motions of the combined and British fleets, to relieve, or prevent the relief of Gibraltar, joined to a general embargo at Cadiz, and the want of other occasions, has prevented me from doing myself the honor of addressing you since the 29th ultimo. I hope you will be persuaded that my time has been devoted to no other pursuits than those which my duty dictates. Enclosed I have the honor to send a particular relation of the most interesting circumstances which have passed in this interval. I have had occasion to compare this intelligence with that of others, and particularly with letters written by a marine officer in this service, but at the same time employed to convey information to another Court, and I find upon the whole my correspondent conforms with others in the most material points, and enters into more minute details than those I have seen from other quarters.

My letters of the 26th and 29th will have advised you of the steps I have taken to obtain redress on affairs interesting to individuals, and to our commerce in general. The enclosed copy of a letter from his Excellency the Count de Florida Blanca, will show that my endeavors have not been entirely ineffectual. The affair of the duties is still under deliberation. As soon as Mr Harrison shall have disposed of the Lord Howe, I shall address the Minister on the subject of the Dover cutter; there can then be no pretence for detention or delay. I have since my last received advice from Paris, but not from our commissioners, that the difficulties with respect to the powers of the British Plenipotentiary have been obviated, and that a separate agent has been named to treat with us. But on this head you will have more ample information than it is in my power to give you.

I am also informed, that M. Rayneval, brother to M. Gerard, has gone to London. This circumstance renders the appearance of the negotiation more serious. I am persuaded the greatest obstacles to a pacification will come from this quarter. It is difficult to relinquish favorite ideas, of which to attain the accomplishment, so much treasure has hitherto been spent in vain. Perhaps it will be best for us that we have not concluded a treaty here, which we have so long solicited.

The expedition mentioned in my last, is certainly resolved on. The Count d'Estaing it is said will have the command, and will sail from Cadiz with between forty and fifty sail of the line, and ten or twelve thousand troops. The squadron at Brest is fitting for sea, and is to consist of eight or ten sail of the line. It is conjectured it will sail as soon as Lord Howe's return is known. If the junction is formed in time, this formidable force, under the command of an officer distinguished for his zeal and activity, may hasten the negotiations.

The answers to my letters to Holland, on the subject of the Russian loan, and to those which I have procured others to write to Genoa on the same point, inform me that it fills slowly. That of Spain for three millions will be obtained. I have no doubt of the truth of my information on this subject. In Portugal they pay dear for the gold they obtain from thence. The depreciation is greater than ever, and to prevent its further progress, is one of the most serious objects of the attention of the Ministry. No changes since my last have taken place in the general system of Europe, or in this Cabinet, except that the Count de Florida Blanca has joined another department in the Ministry to that which he before occupied, viz. that of Grace and Justice, vacant by the death of M. Rode. Of course he will have more to do than ever, and I shall be obliged to remind him more frequently of our little affairs.

My situation with respect to American information is exceedingly disagreeable. I hear of arrivals in France, and of letters being received by our Ministers there, without any for me; I am persuaded that the blame falls on European curiosity. I expect soon to have an occasion of writing to you, when I shall do myself the honor to transmit you any further particulars that may appear worthy of your notice. I cannot help repeating that notwithstanding the appearance of peace, the preparations for war are as vigorous as ever.

I have the honor to be, &c.

WILLIAM CARMICHAEL.