COMMITTEE OF FOREIGN AFFAIRS.

Aranjues, May 26th, 1781.

Gentlemen,

The Court being at this place at present, Mr Jay has judged proper to
reside here until it returns to Madrid, from which city I addressed
the Committee the 23d ult. Mr Jay, since his arrival here, has seen
the Minister and been civilly received. He will inform Congress of
what passed on this occasion. M. de la Motte Piquet, whose squadron
could not be ready in time to join M. de Cordova, and enable the
Spanish fleet to oppose that of England, destined to relieve
Gibraltar, sailed on a cruise the 24th ult. to intercept the homeward
bound fleet from St Eustatia, or one from the leeward Islands. The
English squadron, after relieving Gibraltar, is gone to cruise off the
Azores or the Canaries, to intercept the fleet from the Havana with
treasure, the amount of which I mentioned in my last; this, at least,
is the opinion of several well informed people here. That of Spain has
cruised for it to escort it into port, I believe, on a presumption,
that the English would return to port, or detach a part of their
squadron to reinforce their others in various parts of the world.
Should the latter be the case, and these fleets should encounter, that
of Spain will have greatly the advantage in number, it consisting of
thirtytwo sail of the line.

I have the pleasure of informing Congress, that the Court of France
has engaged to guaranty a loan of ten millions of livres for the
States, and to make large advances in stores and cash immediately. I
wish it was in my power to furnish as agreeable accounts from this
Court. The negotiation is in the same situation as when I had last the
honor to write to the Committee, my sentiments of the motives for this
conduct are still the same. The mediation seems at a stand, and,
probably, will not be renewed before the end of the campaign. Troops
have been ordered to march towards Gibraltar from various parts of
the kingdom, but I have some reason to think, with a view to another
object, viz. either to be sent to the West Indies or to Peru, where,
it is said, there appears a spirit of disaffection, which creates some
apprehensions here.

The crop is likely to be more abundant throughout Spain, than it has
been for many years past. I have not as yet heard, that Russia has
taken a decided part in favor of the Dutch. Their squadron in the
Mediterranean and at Lisbon are ordered home