. de la Motte Piquet fell in with
the St Eustatia fleet, consisting of thirtyfour sail, of which he
captured twentyfour, their escort, two seventyfour gun ships and two
frigates, having escaped by their superior swiftness; four other
vessels of the same fleet I hear are taken. The captain of a packet
boat, arrived at Corunna from Newport, says, that he was chased in the
latitude of the Azores by the English fleet, which consisted of
eighteen sail of the line. The Spanish squadron has not been heard of
since it sailed.

Thirtysix transports, of two hundred and two hundred and fifty tons,
are taken up at Cadiz on government account, and provisions for eight
thousand men for four months are ordered. The destination of the
armament is a secret, but there is reason to think it is either
intended for the West Indies or for their own settlements in Peru. If
for the former, it will hardly commence its operations before the
month of November, when the Count de Grasse will be able to join it,
after his return from our coasts.

Many bills, drawn by Congress last year, have already been presented
and accepted by Mr Jay; the funds are not yet provided for their
payment, but I hope the advices lately received from Congress will
produce a change of conduct in this Court. I allude to a letter from
the Committee, which came in the Virginia to Cadiz. I am persuaded the
Minister was informed of its contents before it reached Mr Jay, for
the packets were stopped at Cadiz, and bore evident marks of having
been inspected.

The Committee must be sensible, that a negotiation will ever be
carried on to our disadvantage, when the parties with whom their
Minister treats, are thus early informed of the most secret intentions
of Congress. This apprehension renders my correspondence with the
Committee more irregular than it would otherwise be, for I am often
obliged to wait ten days or more, for safe opportunities of conveying
my letters by private hands to Cadiz, Bilboa, or the ports of France,
to prevent a previous examination of them here.

I hope soon to write by M. Gardoqui, but I have so often advised you
of this gentleman's intended departure, and then been so often
disappointed, that I cannot give full belief to the late information I
have received on this subject.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

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TO THE