Nantes, February 14th, 1777. Gentlemen, The enclosed book is esteemed a work of genius, and as such I have thought it proper to be sent to you. We were acquainted with the author in Paris, who is a man of very high character and so strongly our friend, that I have no doubt if the want of his second volume, which is not yet published, should render any explanation necessary, he will give it with pleasure. Since I had the honor of writing yesterday, Mr Thomas Morris has informed me of the agreement, which he has just concluded with the Farmers-General for all the tobacco that shall arrive here on your account, at seventy livres a hundred. It was probably in contemplation of this, that they refused to sign the treaty with us, after they had pledged their word for it. Our object was to interest government here through them in our commerce, so much as to secure their utmost protection of it; to insure the exports of our produce, which we apprehended the scarcity of shipping and sailors would render impracticable in our own bottoms, and to command a considerable advance of ready money for a full supply of arms, ammunition, rigging, &c. which we might convey with more certainty under their protection. To compass these objects we were induced to offer them such tempting terms. The price they have now agreed to give is certainly a good one, but I fear it will not retrieve us from our difficulties, as there is no advance stipulated, and the difficulty of exportation seems to increase daily. Our latest intelligence from England informs us, that a bill is now passing for granting letters of marque against you, or rather for repealing so much of their former act, as confined it to the navy. The press there still continues very violent, but not equally productive; that, together with the great preparations of France and Spain, seems to render the continuance of peace for many months impossible. From every thing that I can learn, their armaments against you will be very late, if the situation of Europe will suffer them at all; but it is best to prepare for their plan, as if it would be executed in its fullest extent, for it is impossible to have such reliance upon the politics of Europe, as would justify the hazarding much upon their issue. I believe you have not yet been apprized of what it may be material for you to know, which is, that the British government offered to deliver the prisoners, taken on Long Island, to the East India Company to be sent to their settlements, if the Company would send for them to Gibraltar. This proposition is upon record in the Company’s books, a general court having been held expressly upon it. I have the honor of being, &c. ARTHUR LEE. FROM JAMES GARDOQUI TO ARTHUR LEE. Madrid, February 17th, 1777. Sir,