I lose no time in making you acquainted with the substance of this gentleman's communication. He informs me that he had just received dispatches from England, referring to a declaration of ministers in parliament, relative to a proposed repeal of the orders in council, provided the United States government would return to relations of amity with us, the contents of which may possibly induce the American government to agree to a suspension of hostilities as a preliminary to negotiations for peace;--that he proposed sending his majesty's hired armed ketch Gleaner to New York, with letters to Mr. Baker, whom he had left at Washington in a demi-official capacity, with directions to communicate with the American minister and to write to me the result of his interview. Should the president of the United States think proper to signify that hostile operations should cease on the American side, Mr. Foster suggests the expediency of my being prepared to make a similar signification on our part. As I propose sending Colonel Baynes immediately into the United States, with a proposal for a cessation of hostile operations, I enclose for your information the copy of my letter to General Dearborn, or the commander-in-chief of the American forces. Mr. Foster also submits the propriety of our abstaining from an invasion of the United States territory, as only in such an event could the American government be empowered to order the militia out of the States. I am led to believe from this, that General Hull, in possessing himself of Sandwich, has exceeded his instructions; particularly as Mr. Foster informs me that Mr. Monroe had told him Fort Maiden (Amherstburg) would not be attacked, but that General Hull had stated to a friend of his, some time ago, that he would attempt it. A report has been made to me that a frigate and six transports, with the Royal Scots (1st battalion) on board, from the West Indies, are just below Bic;--in consequence of this reinforcement, I have ordered the company of the 49th regiment, sent to Kingston, to remain there; and in addition to the Royal Newfoundland Regiment, and a detachment of an officer and 50 Veterans most fit for service, now on their route to that station, I shall order Major Ormsby, with three companies of the 49th regiment, to proceed from Montreal to the same post, to be disposed of as you may find it necessary. Lieut.-General Sir J.C. Sherbrooke has informed me that one of the transports, with part of the Royals on board, has been captured by the United States frigate the Essex; that she has been ransomed and the officers and troops allowed to proceed, upon condition that they are not to serve against America until regularly exchanged. The vessel and troops had arrived at Halifax, and will shortly be sent hither.