The British Court are greatly alarmed about Canada, for the defence of which, they are informed eight thousand men at least are necessary. I hardly think it will be possible for them to procure anything like that number. The refusal of a passage by the king of Prussia will embarrass and impede their German supplies as stipulated; and I have good intelligence that it was done with the approbation of the Emperor, and that he will use his influence to prevent any future supplies. I beg the favor of having my duty and respects recommended to Congress, and have the honor to be, &c. ARTHUR LEE. [23] From Baron de Schulenburg. TO THE COMMITTEE OF FOREIGN AFFAIRS. Paris, January 15th, 1778. Gentlemen, I have the pleasure to inform you, that our friends in Spain have promised to supply us with three millions of livres in the course of this year. I should be happy that immediate and precise orders were sent from Congress for the appropriation of it; which will prevent it from being expended in a manner, perhaps, less useful than the purposes they may wish to fulfil. My last advices from Bilboa assure me, that they are shipping the blankets and stockings I ordered. The enemy are raising men in England and Scotland with great industry; but their best stock (the 3 per cent consols) has fallen 7 per cent. I have the honor to be, &c. ARTHUR LEE. BARON DE SCHULENBURG TO ARTHUR LEE. Translation. Berlin, January 16th, 1778. Sir, In answer to the letter, which you did me the honor to write me the 28th of December last, I begin with remarking, that before this last, I have received two letters from you, viz. of the 4th and 11th of the same month; but as you say that you have written twice to me since the 4th of December, this expression may leave some doubt, whether the letter of the 4th is comprehended in these two or not; in the latter case, one of your letters must be lost. With respect to myself, Sir, since my letter of the 13th of December, the receipt of which you acknowledge, I have sent you two answers, dated the 18th and 23d of the same month, which, as I hope, have reached you. I address this, as you desire, to the care of Mr Grand, banker, Rue Montmartre, and to be certain in future, that none of our letters miscarry, I propose to you, Sir, to number yours as I shall do mine, beginning with the present. Your reflections concerning the present state of American affairs are very just, and we can perceive that General Howe’s situation must be very difficult and embarrassing. Time must discover how he will extricate himself, and whether he will choose and maintain his quarters with more prudence and good fortune than he did last year.