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Rh ment of things between Great Britain and America, which Dr. Franklin very properly says requires to be treated in a very different manner from the peace between Great Britain and France, who have been always at enmity with each other.

3. An establishment for the Loyalists must always be upon Mr. Oswald's mind, as it is uppermost in Lord Shelburne's, besides other steps in their favour, to influence the several States to agree to a fair restoration or compensation for whatever confiscations have taken place.

With these instructions Oswald left England in the last days of May. He was also the bearer of letters from Fox, who had already sent Grenville instructions relating not only to France and her European partners in the war, but to America as well. Following the directions of his chief Grenville now claimed the right of negotiating with the American Commissioners. The omission of Spain from his full power he attributed to the fact of his not having been as yet able to extract anything as to the views of D'Aranda the Spanish Ambassador at Paris, which he would communicate to the English Government. D'Aranda in fact had refused to speak on the subject of peace, till he had received powers from his Government, which had not arrived, for Spain was waiting for the result of the final assault on Gibraltar. Nor as yet had Grenville been able to extract anything out of M. Berkenrode, the Dutch minister, as to the views of the States-General. It consequently seemed natural to him that no mention should as yet be made of Holland. The omission of America he attributed in a conversation with Franklin to his power having been carelessly copied from that given to Mr. Stanley when the latter went over to negotiate with France before the peace of 1763. Vergennes however was not so easily satisfied. He suspected that the effect of the great naval victory of Rodney over De Grasse had been to create an indisposition in England to peace with France, and that England was attempting to separate France from America; but he also knew that the national