E COMMITTEE OF FOREIGN AFFAIRS.

Madrid, December 19th, 1780.

Gentlemen,

I wrote to the Committee the 20th ult. to which letter I beg leave to
refer them. Having now an opportunity of writing by a vessel, which
conveys a copy of my last, I seize it to inform them that the
situation of our affairs here is much the same as at that period. Mr
Jay has received near eighteen thousand dollars to pay the bills first
accepted, and this, with the twentyfive thousand expected from France,
will give us a respite until the month of March. In the interval, I
hope the Court will enable Mr Jay to answer the others as they become
due, though this will depend much on the facility it finds to procure
money. I have reason to think that the Ministry expect some treasure
from America, that they hope to negotiate in Holland a loan of forty
millions of reals, and another at home and abroad for eight millions
of dollars. I shall be glad to see these expectations realised.

The States of Holland have acceded to the armed neutrality;
notwithstanding this, the English contrive to take their ships every
day, and it is not improbable, that orders have been given to attack
their possessions in the East Indies. No satisfaction has, as yet,
been given by the States in answer to the Memorial of Sir Joseph
Yorke, mentioned in my last. The Dutch Minister and his Secretary have
each told me, that it would be considered as words, and answered as
such.

The Empress Queen is dead, which leaves the Emperor to act at full
liberty. He is said to be ambitious and revengeful, and well disposed
to Great Britain. I know that his Envoy at this Court is strongly
attached to the interests of that country; but his father, the Prince
de Kaunitz, was too long the favorite of the mother, to expect to hold
the same influence with the son. It is to be hoped, that the ensuing
campaign will pass, before the Emperor can be in a situation to
embroil the affairs of Europe.

The Count d'Estaing, who sailed from Cadiz the 7th ultimo, was not
arrived in France at the departure of the last courier. This is an
unlucky circumstance, as it will retard the operations of the ensuing
year. Mr Cumberland is still here, and entertains hopes of success, or
affects to do so. The Count de Montmorin seems to have no
apprehensions, and while that is the case, I flatter myself that we
need not be uneasy at a circumstance, which in itself is ver