TO JOHN JAY.

PARIS, December 31, 1787.

SIR,--Since the receipt of the letter of Monsieur de Calonnes, of

October the 22d, 1786, I have several times had the honor of mentioning

to you, that I was endeavoring to get the substance of that letter

reduced into an _Arret_, which, instead of being revocable by a single

letter of a Comptroller General, would require an _Arret_ to repeal or

alter it, and of course must be discussed in full Council, and so give

time to prevent it. This has been pressed as much as it could be with

prudence. One cause of delay has been the frequent changes of the

Comptroller General; as we had always our whole work to begin again

with every new one. Monsieur Lambert's continuance in office for some

months, has enabled us, at length, to get through the business; and I

have just received from him a letter, and the _Arret_ duly

authenticated; of which I have the honor to send you a number of

printed copies. You will find that the several alterations and

additions are made, which, on my visit to the sea-ports, I had found to

be necessary, and which my letters of June the 21st and August the 6th,

particularly mentioned to you. Besides these, we have obtained some new

articles of value, for which openings arose in the course of the

negotiation. I say _we_ have done it, because the Marquis de La Fayette

has gone hand in hand with me through this business, and has been a

most invaluable aid. I take the liberty of making some observations on

the articles of the _Arret_, severally, for their explanation, as well

as for the information of Congress.

Article 1. In the course of our conferences with the Comptroller

General, we had prevailed on him to pass this article with a

suppression of all duty. When he reported the _Arret_, however, to the

Council, this suppression was objected to, and it was insisted to

re-establish the duties of seven livres and ten sous, and of ten sous

the livre, reserved in the letter of M. de Calonnes. The passage of the

_Arret_ was stopped, and the difficulty communicated to me. I urged

everything I could, in letters and in conferences, to convince them

that whale oil was an article which could bear no duty at all. That if

the duty fell on the consumer, he would choose to buy vegetable oils;

if on the fisherman, he could no longer live by his calling, remaining

in his own country; and that if he quitted his own country, the

circumstances of vicinity, sameness of language, laws, religion and

manners, and perhaps the ties of kindred, would draw him to Nova

Scotia, in spite of every encouragement which could be given at

Dunkirk; and that thus those fishermen would be shifted out of a scale

friendly to France, into one always hostile. Nothing, however, could

prevail. It hung on this article alone, for two months, during which we

risked the total loss of the _Arret_, on the stability in office of

Monsieur Lambert; for if he had gone out, his successor might be less

favorable; and if Monsieur Neckar were the successor, we might lose the

whole, as he never set any store by us, or the connection with us.

About ten days ago, it became universally believed that Monsieur

Lambert was to go out immediately. I, therefore, declined further

insisting on the total suppression, and desired the _Arret_ might pass,

leaving the duties on whale oil as Monsieur de Calonnes had promised

them; but with a reservation, which may countenance our bringing on

this matter again, at a more favorable moment.

Article 2. The other fish oils are placed in a separate article;

because whatever encouragements we may hereafter obtain for whale oils,

they will not be extended to those which their own fisheries produce.

Article 3. A company had silently, and by unfair means, obtained a

monopoly for the making and selling spermaceti candles: as soon as we

discovered it, we solicited its suppression, which is effected by this

clause.

Article 4. The duty of an eighth per cent. is merely to oblige the

masters of vessels to enter their cargoes, for the information of

government; without inducing them to attempt to smuggle.

Article 6. Tar, pitch and turpentine of America, coming in competition

with the same articles produced in the south-western parts of France,

we could obtain no greater reduction, than two and a-half per cent. The

duties before, were from four to six times that amount.

Article 10. The right of entrepôt given by this article, is almost the

same thing, as the making all their ports, free ports for us. The ships

are, indeed, subject to be visited, and the cargoes must be reported in

ports of entrepôt, which need not be done in the free ports. But the

communication between the entrepôt and the country, is not interrupted

by continual search of all persons passing into the country, which has

proved so troublesome to the inhabitants of our free ports, as that a

considerable proportion of them have wished to give back the privilege

of their freedom.

Article 13. This article gives us the privileges and advantages of

native subjects, in all their possessions in Asia, and in the _scales

leading thereto_. This expression means at present the isles of France

and Bourbon, and will include the Cape of Good Hope, should any future

event put it into the hands of France. It was with a view to this, that

I proposed the expression, because we were then in hourly expectation

of a war, and it was suspected that France would take possession of

that place. It will, in no case, be considered as including anything

westward of the Cape of Good Hope. I must observe further, on this

article, that it will only become valuable on the suppression of their

East India Company; because, as long as their monopoly continues, even

native subjects cannot enter their Asiatic ports for the purposes of

commerce. It is considered, however, as certain, that this Company will

be immediately suppressed.

The article of tobacco could not be introduced into the _Arret_;

because it was necessary to consider the Farmers General as parties to

that arrangement. It rests, therefore, of necessity, on the basis of a

letter only. You will perceive that this is nothing more than a

continuation of the order of Berni, only leaving the prices unfixed;

and like that, it will require a constant and vexatious attention to

have its execution enforced.

The States who have much to carry, and few carriers, will observe,

perhaps, that the benefits of these regulations are somewhat narrowed

by confining them to articles brought hither in French or American

bottoms. But they will consider that nothing in these instruments moves

from us. The advantages they hold out are all given by this country to

us, and the givers will modify their gifts as they please. I suppose it

to be a determined principle of this court not to suffer our carrying

business, so far as their consumption of our commodities extends, to

become a nursery for British seamen. Nor would this, perhaps, be

advantageous to us, considering the dispositions of the two nations

towards us. The preference which our shipping will obtain on this

account, may counterpoise the discouragements it experiences from the

aggravated dangers of the Barbary States. Nor is the idea unpleasing

which shows itself in various parts of these papers, of naturalizing

American bottoms, and American citizens in France and in its foreign

possessions. Once established here, and in their eastern settlements,

they may revolt less at the proposition to extend it to those westward.

They are not yet, however, at that point; we must be contented to go

towards it a step at a time, and trust to future events for hastening

our progress.

With respect to the alliance between this and the two imperial courts,

nothing certain transpires. We are enabled to conjecture its progress

only from facts which now and then show themselves. The following may

be considered as indications of it. 1. The Emperor has made an attempt

to surprise Belgrade. The attempt failed, but will serve to plunge him

into the war, and to show that he had assumed the character of

mediator, only to enable himself to gain some advantage by surprise. 2.

The mediation of France is probably at an end, and their abandonment of

the Turks agreed on; because they have secretly ordered their officers

to quit the Turkish service. This fact is known to but few, and not

intended to be known; but I think it certain. 3. To the offer of

mediation lately made by England and Prussia, the court of Petersburg

answered, that having declined the mediation of a friendly power,

(France,) she could not accept that of two courts, with whose

dispositions she had reason to be dissatisfied. 4. The States General

are said to have instructed their Ambassador here, lately, to ask of M.

de Montmorin, whether the inquiry had been made, which they had

formerly desired: "By what authority the French engineers had been

placed in the service of Holland?" And that he answered that the

inquiry had not been made, nor should be made. Though I do not consider

the channel through which I get this fact, as absolutely sure, yet it

is so respectable that I give credit to it myself. 5. The King of

Prussia is withdrawing his troops from Holland. Should this alliance

show itself, it would seem that France thus strengthened might dictate

the re-establishment of the affairs of Holland in her own form. For it

is not conceivable that Prussia would dare to move, nor that England

would alone undertake such a war, and for such a purpose. She appears,

indeed, triumphant at present, but the question is who will triumph

last?

I enclose you a letter from Mr. Dumas. I received one from him myself,

wherein he assures me that no difficulties shall be produced, by what

he had suggested relative to his mission to Brussels. The gazettes of

France and Leyden to this date accompany this letter, which, with the

several papers put under your cover, I shall send to M. Limozin, our

agent at Havre, to be forwarded by the Juno, Captain Jenkins, which

sails from that port for New York, on the 3d of January.

I have the honor to be, with sentiments of the most perfect esteem and

respect, Sir, your most obedient, and most humble servant.

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