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Rh decision by the Courts of Admiralty of the legality of all the captures made.

Hardly however were the difficulties with Spain and Holland removed, before fresh difficulties arose with France, where the war party still insisted that Dominica should be demanded, and in the event of a refusal by England that the war should be continued. After a sharp struggle they carried the day, and an ultimatum in that sense was sent to England. It found many of the English Ministers in an unbending humour. Richmond and Keppel were openly for continuing the war, and it was only by the strenuous efforts of Shelburne and Grantham, that a majority of the Cabinet was induced to resolve that England should offer to cede Tobago in exchange for Dominica. Fitzherbert was also instructed to insist on the retention of either Negapatam or Demerara and Essequibo in the Dutch negotiation, if he could not get Trincomalee. If France would not accept these terms, he was immediately to leave Paris. Neither Richmond nor Keppel attended the Cabinet when this decision was finally arrived at, and their resignation was now only a question of days.

The alternative of peace and war was thus clearly placed before the French King and his advisers. The decision for a long time hung in the balance, and only after a fierce discussion were the views of Vergennes and Rayneval, the latter of whom had hurried back to France, preferred to those of De Castries and the war party. Meanwhile the offer of Tobago was accepted by France, and Dominica remained with England. Trincomalee was however abandoned to the Dutch; while Negapatam was retained. It was further agreed that, as owing to existing Acts of Parliament no definite settlement of the commercial questions pending between the two countries