The bay of Honduras, so celebrated for its trade in logwood and mahogany, is situated between Cape Catoche, the north-eastern most point of the province of Yucatan, and Cape Honduras. The land in the neighbourhood of this bay is inhabited by the Mosquito Indians. The English factories in 1769 amounted to 200 whites, the same number of people of colour, and 900 slaves. They exported to Jamaica, mules, &c. and to Europe, 800,000 feet of mahogany, 10,000 pounds of tortoise-shell, and 200,000 pounds weight of sarsaparilla. This trade was much damped by smuggling: but in the year 1763 Great Britain obtained the privilege of the logwood trade. They have lately discovered that the Campeachy wood of Yucatan, which grows on drier ground, is better, and of a closer grain, than the Honduras wood: but the price of the former had been so long kept up, that the latter trade was the most flourishing. The best mahogany is now cut in Yucatan. The climate of the Honduras is superior to that of the West Indies; the sea-breezes being regular during the whole of the year, excepting in April, May and June, when the heats of summer prevail; but the mean heat is 30°. BALIZE is the chief and only settlement of the British which is worth mentioning, situated at the mouth of a river of the same name, and consists of 200 habitations built of wood, and elevated on pillars. The shops, magazines, or offices, are on the ground-floor, and the habitable parts in the upper. The two floors have each piazzas, to which the people retire, from the heat of their inner apartments. The river on which Balize is situated, is navigable for boats 200 miles up the country, and the wood cutters proceed to that distance, in search of their article. The agriculture of this country has been neglected, on account of the wood trade, though the soil would produce the West Indian commodities of sugar, coffee, or cotton, with rice and Indian corn in great abundance. The British government appoint an officer to the command of this station, who is usually an officer of some rank in the army. Many of the turtle which are caught here, are exported to England; and the hawks bill (a particular kind) is consumed in the settlement; its shell being an article of the commerce of Honduras. The bay of Honduras is full of shoals, rocks, and islands, which make its navigation dangerous. The fog, which is prevalent during the northerly winds, increases the difficulty, and the currents on the coast are very uncertain. The introduction of British manufactures has been impeded into the adjacent Spanish settlements by the jealousy of the Spaniards; but it is probable that it may in time become a very valuable station. The British government grant a convoy in January and July each year to the Honduras traders; and the annual revenue of the settlement is stated at about five thousand pounds.