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Rh hour." The same phrase it came out had been used almost at the same time by Masserano in London, and being reported to Shelburne, led to an interview, when the Spanish Ambassador said "that the Manilla Ransom should be paid in January, if the point about the Falkland Islands could be accommodated." A similar declaration was made at the same time by Choiseul to Lord Hertford then in Paris, and was communicated to the English Administration. To this proposition Shelburne replied in a conciliatory spirit, refusing the direct mediation of France in a question which concerned England and Spain alone, at the same time expressing his willingness to treat the two questions of the ransom and the settlement of the islands together, if by that means an agreement could be more easily reached. When, however, the question was further gone into, Guerchy declared that what Choiseul had meant was that if the settlement on the Falkland Islands was abandoned by England, the Manilla ransom might be paid subject to the arbitration of France as to the amount, an announcement which caused Chatham to declare that the original proposal was not merely changed "mais qu'il s'évanouit."

Rochfort at one moment conceived that England might consent to the amount of the payment being made a subject of arbitration, but Shelburne refused arbitration on the amount of the payment, as his predecessor had on the whole question. Masserano himself had declared that "as the King of Spain's dignity alone was in question, and his desire of strict justice was the sole motive of his conduct, he should in consequence always think himself obliged to pay the whole or none." Availing himself of this declaration Shelburne insisted on the payment of the whole sum due, offering in return that the settlement on the Falkland Islands should be abandoned by England,