In Order to narrow as much as possible the Objects of our Discussions, I have stated in the enclosed paper what occurs to me on the different points to which your notes1 apply, except the 2d: 3d: & 4th: Articles of those Notes, which I have reservd for further examination and inquiry;— I expect that by tuesday or wednesday at furthest I shall be able to converse further with you on those points as well as with respect to what you suggested on the subject of the East Indies.2— The Points in Discussion will then be reduced within a small compass, but they certainly do not relate to the least important parts of our Negotiation.— with respect to them I can only say that you shall continue to find in me the same openness of discussion and the same desire to state to you without reserve what I think may be conceded to the object of speedy consideration, & what the Interest & Honor of my Country & the Duty which I owe to the King oblige me to insist upon as necessary for that object.

It is with sentiments of very real Esteem & Respect that I have the Honor to be &c &c &c

[Grenville’s Responses to Jay’s Queries]

To the Honb. Mr. Jay &c &c &c

Observations—enclos’d with the above Letter

No.1. In consequence of the observation contain’d in the first remark, Lord Grenville proposes to add in the first Article of the Projet, after the words “property thereof” at the end of the first paragraph these words: “And such of them as shall continue to reside there for the purposes of their Commerce shall not be compell’d to become Subjects of the United States or to take any Oath of Allegiance to the Government thereof, but they shall be at full Liberty so to do (if they think proper) within One Year after the evacuation of the Posts, which period is hereby assigned to them for making their choice in this respect.”

Considering the length of the first Article, now encreased by this addition it may be better to divide it into Two; the second beginning with the Words, “It shall at all times be free” &c &c &c3

Articles 2. 3. & 4.} Reserved for further Examination.

5. The meeting of the Commissioners respecting the River St Croix is proposed to be in London, because it is supposed that the great mass of evidence on the subject is here:— A Power may be given to them either to direct a local survey, or to adjourn to America, but it seems very unlikely that this could become necessary.4

6. No idea was entertain’d of confining the mutual Navigation of the Missisipi to that part of the River where it bounds the Territory of the United States,— that qualification was intended only to have reference to the free admission of British Merchants Ships, into the Bays Ports and Creeks of the United States on the Missisipi, nor would it have been propos’d at all to repeat in this Article what is so distinctly stipulated in The Treaty of Peace respecting the free Navigation of the Missisipi, except for the purpose of expressly extending that stipulation to every part of the Waters now propos’d to form a part of the Boundary.

7. The Right of Admission into Ports &c. for the purposes of trade, and the general liberty of Commerce spoken of in the Article, are not consider’d as Commercial privileges, such as are usually made the subject of temporary regulation by special Treaties of Commerce—. Great Britain by no means declines to give the same rights permanently to America, as with respect to those parts of Her Dominions which are open to foreign commerce.

These rights are indeed now generally acknowledged to be incident to a state of Amity and good correspondence, and if it is proposed, to particularize them, as with respect to the Missisipi;— this is done only with the view of removing the possibility of such doubts as were formerly raised here on the subject5

8. On the fullest reconsideration of this Preamble Lord Grenville sees no ground to think it liable to the objection made by Mr Jay, particularly when compar’d with the Preamble propos’d for the Fourth Article;— The Proceedings in both Articles are grounded on the allegations of Individuals:— The Truth of those Allegations is referred to the decision of the Commissioners.— Lord Grenville’s opinion respecting the prior aggression of the United States, as well as His reasons for that opinion are well known to Mr. Jay;— but He has no wish to introduce into the propos’d treaties any discussion of that point.6— He is therefore very ready to consider any form of words which Mr. Jay may suggest for those articles as better suited to the two Objects to which they are directed, those of Justice to Individuals, & conciliation between the Governments:— And this applies equally to the remarks Nos. 9 & 10.

11. The substitution of the word Specie as suggested by Mr. Jay seems fully to meet the object here mentiond.

12. What Mr. Jay here desires was intended to be done, and was indeed conceiv’d to be implied in the general words at the end of the Article.— But Lord Grenville sees no objection to the insertion of express words for the purpose.

13. Lord Grenville explain’d to Mr. Jay this morning the reason of the insertion of the word European in the place here referrd to:— The Subject is connected with the larger consideration to which their conversation led, & from the further discussion of which Lord Grenville is inclin’d to hope that mutual advantage may arise. Mr. Jay will observe that the subject to which his remark No. 15 applies is one instance among many which might be brought to shew that this Article would not be inefficient.

14. To meet the object which was this morning suggested in conversation on this Article, Lord Grenville would propose the adoption of the following additional Article to come in immediately after the eighth.— Lord Grenville has in conformity to what was mentioned by Mr. Jay, used the words of Vattell.

“In Order to regulate what is in future to be esteemed contraband, it is agreed, that under the said denomination shall be comprized all Arms and Implements serving in the purpose of War by Land or Sea, such as Cannon, Musquets, Mortars, Petards, Bombs, Grenades, Carcasses, Saucisses, Carriages for Cannon, musquet rests, Bandileers, Gunpowder, Match, Saltpetre, Ball, Pikes, Swords, Headpieces, Cuirasses, Halberds, Lances, Javelins, Horses, Horse furniture, Holsters, Belts, and generally all other implements of War[”]; as also Timber for Shipbuilding, Tar or Rosin, Sheet Copper, Sails, Hemp & Cordage, and generally whatever may serve directly to the equipment of Vessels;— unwrought Iron and Fir planks only excepted:— And all the above Articles are hereby declar’d to be just objects of confiscation, whenever they are attempted to be carried to an Enemy.

And whereas Corn, Grain or Provisions can be consider’d as contraband in certain cases only, namely when there is an expectation of reducing the Enemy by the want thereof,7 it is agreed that in all such cases, the said Articles shall not be confiscated; but that the Captors, or in their default the Government under whose Authority they act, in this respect, shall pay to the Masters or owners of such Vessels, the full value of all such Articles, together with a reasonable mercantile profit thereon, and also the Freight and Demurrage incident to their Detention.8

15. It seems by no means unreasonable that the effect of this Stipulation should be extended to the existing War, as a natural consequence of the good understanding to be established by this Negotiation, and by the removal of all existing differences.

And it would tend to prevent so many occasions of acrimony and dispute, on both sides, that Lord Grenville thinks it highly desirable to maintain this Article in its present form.9

16. Lord Grenville sees no reason whatever to object to this Article.10

17. This remark seems also perfectly just, and will best be met by omitting the concluding part of this Article.11

18. Lord Grenville rather thinks this Article ought to be permanent, for the mutual interest of both Countries; but He is content to leave this point to the decision of Mr. Jay, who is much too enlighten’d not to see the effect which a contrary conduct to that here prescribd must produce as with respect to America.12

Commercial Projet.—Observations.

Article 2d. Omit these words, “the same being of the Nations on whose behalf they shall be so appointed not otherwise;” And insert in lieu thereof— “The same being first approv’d by the Government of the Country in which they shall be so appointed to reside, and not otherwise.”

3d: The last sentence to run thus, “— by which the Vessels of the One party shall pay in the Ports of the other, any higher or other duties than shall be paid in the similar circumstances by the Vessels of the Foreign Nation the most favor’d in that respect, or any higher or other duties than shall be paid in similar cases by the Vessels of the Party itself into whose Ports they shall come.”