I wrote you before, that the lowest estimate given to the English Ministry for the defence of Canada was eight thousand men, and that their actual force there was about four thousand; the five thousand added will, in their opinion, be sufficient, with their superiority at sea, for its protection. I cannot learn that any but some German recruits are to be sent out this year, and from the situation of things they are more likely to recall a great part of their troops, than to reinforce them. Our friends in Spain have promised to remit me 150,000 livres more, which I shall continue to vest in supplies that may be useful to you. I hope, in consequence of what I formerly wrote, to have the express order of Congress relative to the line they would choose to fix between the territories of the United States, and those of the crown of Spain. The privileges to be enjoyed by the subjects of the United States, settling for the purposes of commerce, and the regulation of port duties, remain yet to be settled in both nations. But I foresee that if they are left unregulated, they will be the source of complaints and disagreements. The flotilla is not yet in port, which retards the operations in Europe. I could have wished that the great object of having a superior naval force in America, had not been left to the uncertain issue on which it was placed by other advice than mine. Had the Brest and Toulon fleets, which were equally ready, been ordered to sail at the same time, that which met immediately with favorable winds to go on, and the other to return, one of them would probably have been upon your coast before this time, that is, before the English fleet could possibly have sailed to reinforce and save Lord Howe; and as having a superior force in America was the great object, together with that of taking the Howes by surprise, they should have made as sure of this aim as possible. And indeed, had it been executed with address, the war would have been ended. M. Penet has proposed to me the collecting and carrying over a number of workmen to establish a foundery of cannon, and a manufactory of small arms. It is to be at his expense, under the protection of Congress. As this seems to me much more likely to answer your purposes than our sending them, I have ventured to give him my opinion, that it will be acceptable to Congress. We have found such a universal disposition here to deceive us in their recommendations, that it is ten to one, if workmen chosen by us in such a circumstance were skilful. The disposition in Holland seems to be favorable to us, but I apprehend it is not warm enough to produce any decided proof of it, till they see Great Britain more enfeebled. M. Dumas has published a Memoir I sent him on the subject, which he thinks will have some effect. With my humble duty to Congress, I have the honor to be, &c. ARTHUR LEE.