Great Britain has not yet thought proper to declare war in form against France, but the vessels and sailors of each nation are reciprocally seized in their ports, and a French frigate has lately made prize of an English privateer. Both are preparing with all possible despatch, and both waiting for your decisive declaration with an anxiety proportioned to their conviction of that declaration deciding the fate of the war. As far as I can venture to judge of Courts and Ministers, those of this country seem cordially disposed to co-operate with you in driving the English entirely out of America. But from what I could observe during the conference on the treaty, they seem to have some wishes relative to the islands of the fishery, which are not altogether compatible with the system laid down by Congress. The war between the Emperor and the King of Prussia seems inevitable. It will be a war of giants and must engage all Germany. Three hundred thousand men, the best disciplined and the best led that ever made war, are ready to dispute the question on each side. Russia is sufficiently occupied by her own situation in regard to the Porte. The North is therefore no longer a subject for your apprehension. The whole house of Bourbon will certainly join in the war against England. Holland, therefore, seems the principal object of negotiation now; because, if the enemy should be deprived of her amity, they soon must be reduced to a _carte blanche_. This is the present situation of Europe. I enclose you a Memorial,[32] which I wrote last year, and have now sent to Holland to promote the disposition we are informed they entertain at present in our favor. In the additional articles I sent for your consideration, there are some not very materially different, but as they are expressed in a different manner, I thought it might be of use to submit the choice to you. The enclosed report[33] is what I received from the Court of Spain, in answer to an application in behalf of the people, who have involved themselves in this unfortunate situation. It is proper to inform you, that the department of Spain, to which it has pleased Congress to destine me, is the most expensive of any, because the Court pass different parts of the year at four different places, at which every public Minister is obliged to reside, and consequently to have a house, which augments very much his expense. As I wish to avoid all occasion of blame, I mention this circumstance that I may not appear to be extravagant, should my expense increase on going thither. You will greatly oblige me by presenting my duty to Congress, and believing me to be, with the greatest respect, &c. ARTHUR LEE. [31] The reason was, as previously stated, that Franklin and Deane were not authorised by the French Court to make known to any person the sailing of the fleet.