I then drew the conversation to our affairs in Holland, and the prospects of an alliance with the Dutch. He said those prospects were less fair than ever; for that though Mr Wentworth had been sent there by England on pretence of settling a cartel, yet that his real business was to negotiate a separate peace. I observed that in my opinion England would be the first nation to acknowledge our independence, (for there are many reasons that induce me to think that France does not in fact wish to see us treated as independent by other nations until after a peace, lest we should become less manageable in proportion as our dependence upon her shall diminish.) I threw out this opinion to see how it would strike him. He made a short pause, and then asked me if I had heard that Lord Germain had resigned? I told him I had, and as he chose to wave the subject I did not resume it, lest he should from my pressing it suspect that I meant more than a casual remark. The conversation then turned upon our affairs here. I remarked, that the friends of Spain in America must greatly diminish, that the manner we were treated by this Court was far from conciliatory, and that it would perhaps have been better as things have turned out, if America had not sent a Minister here. He gave into this opinion, but added, we must be contented here now during the war; that Spain was necessary; that she was to be treated like a mistress. He also said, that if I had been landed in France instead of Spain, I should not probably have come to Madrid so soon as I did, and was going to explain himself, when the entry of his servants with breakfast interrupted us. Having made it a rule to give Dr Franklin frequent and minute information of my situation, I wrote him the following letter by the Ambassador's courier. "Madrid, March 1st, 1782. "My dear Sir, "I have lately received a very friendly letter from the Marquis de Lafayette, covering some despatches from Mr Livingston. I find that the objects of his voyage are interesting to us, and that it is the desire of Congress, that we should correspond with him. My answer to his letter is herewith enclosed. Peruse and dispose of it. "I have given him a summary account of my situation here; he will doubtless be willing and perhaps able to afford you assistance relative to the difficulties it imposes upon you. "The Minister has ordered the balance due (about twentysix thousand dollars,) on the one hundred and fifty thousand dollars, to be paid to M. Cabarrus on my account, and has through him informed me that no more is to be expected. "M. Cabarrus is exceedingly anxious about the money we owe him, and which the twentysix thousand dollars he is to receive will not pay. "He declines making further advances. The Ambassador of France can afford me no resources. M. Cabarrus is ready to supply what we may want, on the promise of either France or Spain to repay him in ten or twelve months.