Referring to the Letter I had the honour of writing by Mr Strachey, who left this Place yesterday afternoon, I beg leave to inform you that I called on Mr Jay this morning for an Answer to a Letter from me to the American Commissioners, delivered to him some days past, in relation to the Refugees and Loyalists, and also to one Sent to him from Mr Strachey yesterday, on the Same Subject.1 To this, Mr Jay told me that he intended this day to call on Mr Franklin and Mr Adams on that business, and to take their Sentiments thereon; and that whatever Should be agreed between them, Should be Stated in a Letter to me,2 to Serve as an Answer to both Mr Stracheys Letter and mine; which he hoped would be in my hands to morrow, to be sent to England, if I thought proper.

This Interview gave occasion to the subject of the Refugees being again taken up in the way of Conversation, When Mr Jay went over much the same arguments against a Restitution of their Estates, as he and Doctor Franklin had done on many former occasions; and particularly in their Conversation with Mr Strachey; with an addition of Sundry other Observations, relative to the American business. Viz.

That there are Certain of those Refugees they never would forgive, for reasons that would be recited in their Letter to me. That they would not Suffer them to live in their neighborhood, although we had Lands to Sett them down upon, nor would those Persons be Sure of their Lives there.

That, however, they were not of any great number; and as to the Others, less obnoxious, the Clause of Amnesty in the Plan of the New Treaty, would make all Such of them as were not under Judgement, or prosecution, perfectly easy in their Several Stations; and he made no doubt but ^after a Peace^ the Several States would treat them with as much lenity as their Case would admit of. And the bulk of these being besides of low rank, they would Successively fall into the Sundry Occupations of the Country; and so Government would be saved the Expence of transporting and Subsisting them.

That with respect to those abovementioned, under Exception, Since, failing of a Restoration of their Estates, we pressed to have a Fund for Compensation allotted to us, they had given us Land; at a proper distance, which they might occupy, and if not occupied, it might be Sold. That Money might be raised upon that Land. If not enough, the Difference might be Supplied without their assistance. That such Difference would be a small matter in Comparison of the Expence of going on with the War another year. Which he said would be the Certain Consequence of refusing to close with them on the present occasion: And that according, as we Should determine, they would be guided in their Reports and Advices to the Congress; and their Attention, more or less, to this Court. That they have just now received fresh Advices from the Congress dated in the end of Septemr.3 By which he found the People of that Country were universally Suspicious of the Intention of Great Britain towards them.4 That their printed publications were brim full of these Insinuations, and they were preparing themselves accordingly for the Consequences.

That they the Commissioners were, however, perfectly Satisfied that England was Sincere, and meant to give them their Independence, and to put an end to the War. [And] as they equally, and most ardently longed to see their Country settled in peace, Mr Jay said he hoped we would not let this Opportunity slip, but resolve speedily to wynd up this long Dispute, so as we might be again as one People.

That they had hitherto acted in this Negotiation under Instructions of the year 1779,5 when their Affairs were not in quite so good a Situation as at present, and had gone to the full stretch of them, and farther.

But if we broke up now, we might be assured of their receiving new Instructions, and of a very different kind from the present— In which, among other things, he made no doubt they would be directed to state all the Depredation, plunder and unnecessary Destruction of Property over all their Country, in Charge against the British Demands of bona fidé Creditors, for which in the body of the Treaty, they have now established an Independent Security.6

That by the last Advices in Septemr they understood, the State of pennsylvania had begun upon these Estimates; and there was a Committee actually Sitting at Philadelphia for making up an Accot of all those Damages not occasioned by the direct and necessary Operations of War. Which, when when collected from the Reports of the Several States and brought to a head, would leave no room for any Claims in behalf of the Said British Creditors.7 That now was the time for Britain to take the benefit of the Security offered to those Creditors; and wisely to avoid the Consequences of former Mistakes. For Mr Jay was pleased to say, & which I think myself bound to repeat, That in every Stage of the War our ^offers and^ Acceptances had always come too late, and we had, consequently worse Terms in the next propositions.

That with respect to those British Debts, he had at all times jointly with his Colleagues declared that all that were contracted before the War must be duly paid; yet if their States, by our refusal of Accommodation, Should be continued under their present expensive Establishments, he would not answer for the same favourable determination hereafter. The Time he said was precious—He as they would soon be under a necessity of writing to their Congress in answer to their late Letters. Mr Jay, after repeating his wishes that Gr Britain might determine in a manner Suitable to the present Situation of things, Said That in case we meant to close with them on this, power occasion, he would take the liberty to request, that His Majesty would order his Ambassadors at the Neutral Courts to give so much Countenance to the peace with America, as formally to Intimate its being in the Train of Negotiation; and when signed, that the same should also be notified. The Advice of this, he said, would soon reach America, and would produce the happiest effects there, as well to our benefit as theirs; even although the final Conclusions must wait a Settlement with France. That even that Conclusion would also feel the benefit of those Negotiations.

Soon after, Mr Adams, the other Commissioner, called upon me, and expressed himself equally anxious [that] there might be an end to all our Differences—

In the mean time he delivered me the inclosed Packet from their Congress to Mr Laurens, with a Request that I would send it by the first Courier, and to recommend it so as it might get Safe to his hands.8 Which I promised to do, and hope it will be taken care of. Mr Adams also signified in like manner as Mr Jay had done a Wish that the abovementioned Intimation might be made of the Neutral Courts. He seemed so earnest about it, that I could not avoid asking him as to the object of Such Intimation. He answered [that] among other things, it would make them more Independent or Indifferent about this Court. Which they wished exceedingly might be brought about. That neither he nor Mr Jay had any particular Instructions relative to this Court, nor had any Correspondence with it, farther than as they were bound by the Letter of their Treaty with them. Farther than that, he said [as] much, as if they gave themselves no Concern about them.

That in a Case of a particular Commission, long Residence and habits of Correspondence, it was natural to Suppose a correspondent Complaisance would be created, even under the guidance of the most upright Intentions and Conduct upon the whole; but as to them Two, this Gentleman said, they were not even under those kind of biasses.

Under this Cover I send Six Philadelphia Gazettes—9 down to the 5th of October. In the Paper of that date, there is an Advertisement of the Committee Sitting at Philadelphia for liquidating the Damages which Mr Jay mentioned and which he apprehends will make part of the next Treaty, in case the present plan is not adopted. It stands in the Second Column of the 3d page of that paper, scored with red Ink. In the said 3d page there is an Advertisement of the Resolutions of their Congress worth nottice. Also the pennsylvania Bill in the 3d page of the Pennsylvania packet dated 21st Septemr10

Thursday 7th. Mr Jay called upon me about Noon, and delivered me the two inclosed Letters, the one to Mr Strachey, the other to me—in answer to our two Letters addressed to the Commissioners as abovementioned.11 He repeated his request for a speedy decision, and his Wishes for a favourable one. He said, he had seen a Letter from Mr Morris, the Financier General of their Congress, wherein he says, that to his great Surprise, he finds the American Merchants, the most averse to Peace of any People of that Country.12 I told Mr Jay that was easily accounted for, since the Circumstances of the times threw the Trade of Importation, as well as Exportation, into the hands of a few Merchants of a Superior address, and who had Capital of their own, and an extensive Connection and Correspondence with Merchants in France, Holland &ca, and by means thereof held a Monopoly of the Trade against all other Traders and the Country too; which they must perceive would fall to the ground, as soon as the ^present^ dangers and difficulties Ceased, and their Ports were open to all Adventurers whatever— Mr Morris besides that said that Supplies of all kinds came in so plentifully, that he had countermanded on this occasion, Sundry Orders he had before given for Cloathing for their Troops, and other Necessaries for the publick Service, as they could be had at hand, without the risk of disappointment, & at a moderate price. Mr Jay said it was natural to think so, and that there was a difficulty in getting Freight at Nantes, and other Ports in France, for the great quantities of Goods the Merchants wanted to ship off for that Country—

There are now two Couriers here, besides the one this go’s by. I shall have a Passport ready for another, in case any thing new should require immediate dispatch. I have the honour to be Sir Your most obedient humble Servant—