He said, that previous to Mr Jay's or M. Gerard's arrival at Madrid, M. Mirales had informed him that Congress would yield the navigation of the Mississippi, but that M. Gerard informed him that Congress had changed their resolution on that subject; that he had mentioned these obstacles to Mr Jay and Mr Carmichael, and it was probable that having done this, he had neglected or forgotten to give Mr Jay the notes in question. Mr Jay here reminded his Excellency, that the conference between them of the 2d day of June last turned among other points on these obstacles, and that they had then mutually expressed hopes that regulations calculated to remove them in a manner satisfactory to both parties might be adopted, and that the conferences respecting them were concluded by his Excellency's promising to give Mr Jay notes of his sentiments on the proposed treaty. The Count admitted this, and made several observations tending to show the importance of this object to Spain, and its determination to adhere to it, saying, with some degree of warmth, that unless Spain could exclude all nations from the Gulf of Mexico, they might as well admit all; that the King would never relinquish it; that the Minister regarded it as the principal object to be obtained by the war, and _that obtained_, he should be perfectly easy whether or no Spain procured any other cession; that he considered it far more important than the acquisition of Gibraltar, and that if they did not get it, it was a matter of indifference to him whether the English possessed Mobile or not; that he chose always to speak his sentiments plainly and candidly on those occasions, for which reason he generally acted differently from other politicians, in always choosing to commit himself to paper, and appealing to the knowledge of the French Ambassador and others, who had done business with him, for the proofs of this being the principle of his conduct. He concluded by saying he would give his sentiments in writing on this subject to Mr Jay. Mr Jay made no reply to the Count's remarks on the navigation, but observing, that being little acquainted with the practice of politicians, he was happy in having to treat with a Minister of his Excellency's principles. He added, that there were many points necessary to be adjusted in order to a treaty; that they might proceed to agree upon as many as they could, and with respect to the others, he should state them clearly to Congress, and attend their further instructions.