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216 Majesty will be acknowledged through the whole of the negotiation; the positions established by the Count de Vergennes at the commencement of the treaty will be adopted; every good consequence will be to be expected, notwithstanding what we must naturally feel from the loss of the grand source of our wealth, industry and power in this peace; good humour, confidence and unanimity, will result; so far, at least, as regards this great business. In the case of Dominique being insisted on, the Spanish Peace will be to be reconsidered, the terms altered, the time and issue made uncertain, the whole made doubtful; and distrust, suspicion, regret, and division arise."

On the English terms becoming known in France, great differences of opinion at once made themselves felt. The King, acting under the influence of his own benevolent nature, and Vergennes accepting the inevitable, now that he was deserted by his American allies, united to urge Spain and Holland to desist from their unreasonable pretensions. Louis XVI., according to Fitzherbert, was convinced during every stage of the negotiation, how great an obstacle the cession of Gibraltar would prove in the way of a pacification, and it was through his intervention that the King of Spain now made up his mind to accept the Floridas as an equivalent. The Dutch withdrew from their demand of a preliminary recognition by England of the principles of the Armed Neutrality, and the negotiation was started on the basis of the restitution by England of all her territorial conquests, with the exception of either Trincomalee or Negapatam, and of the