After having duly examined the propositions, which you have been so kind as to address to me, respecting the establishment of a direct commerce between his Majesty’s States and the English Colonies of America, I am of opinion with you, Sir, that it is very probable, that even with paying the highest premium of insurance, the scarcity and dearness of our merchandise in America, added to the abundance and low price of your productions, which can be advantageously sold in Europe, would render this commerce very profitable to the two nations. Nothing remains, therefore, but to make the essay; but a difficulty almost insurmountable presents itself, which is, that never having gone as far as your country, we want vessels as well as captains, pilots, and sailors, who could or would go to such distant seas. Besides, the vessels we have are necessary for the interior commerce between his Majesty’s different provinces, and for that which we carry on with France, England, and Spain. We can only therefore try and see if there are any proprietors of vessels in Holland or Hamburg, that in consideration of a suitable freight, will load with and carry our merchandise; and in the second place, if insurance can be effected. We will endeavor to obtain information on these two points, and if it is possible to succeed by these means, after having removed some other difficulties of less consequence, we may be able to derive some benefit from the information, which you have been so kind as to furnish me. I have the honor to be, &c. BARON DE SCHULENBURG. TO BARON DE SCHULENBURG. Berlin, June 20th, 1777. Sir, I had the honor of receiving your Excellency’s letter of the 18th this day. Upon trial, I hope the difficulties will not be found so great as your Excellency seems to imagine. When I had the honor of conversing with your Excellency, I mentioned, that the admission of our cruisers into his Majesty’s ports to supply themselves with necessaries, careen, and sell their prizes in a secret manner, would be attended with great advantages. It is the only method of establishing a commerce, at present, from America hither, in the commodities and vessels of the States; for the privateers take in a light cargo from America, which they bring to the ports where they are permitted; this they exchange for necessary supplies, and then make a cruise, by the profits of which they are enabled to purchase a cargo of such manufactures as are wanted in America, with which they return.