in the North of Europe beyond the two millions destined to support the intended operations in the north of Germany under the immediate directions of the Prince Royal of Sweden.

The Prince Regent takes so deep and cordial an interest in whatever concerns the Continent, that His Royal Highness, in considering this forcible appeal (coming as it does from an Allied Power whose great and splendid exertions entitle Her to every possible support) has been disposed to weigh it upon the grounds of its practicability, rather than as a mere question of pecuniary sacrifice on the part of Great Britain.

In representing to His Imperial Majesty the considerations, which bear upon this question, your Lordship will not fail to impress, that, in conformity with the policy on which this country has so long acted, & which His Imperial Majesty has already viewed and recognized in the light of a direct aid to Russia, the arrangements for carrying on the war in the Peninsula have been made upon a more extended scale than in any former year.

At the express sollicitation of Russia, His Royal Highness has further been induced to charge himself with an arrangement for bringing forward the Swedish force in support of the common cause; a measure which was represented as a diversion indispensable to the successfull progress of the Russian arms on the side of Prussia, with this view, the utmost means the British Government could at that time hope to realize for the service of the North of Europe, regard being had to the probable state of the commercial exchanges, was placed at General Hope's disposal, and a treaty has been signed, the beneficial effects of which it is to be hoped both Russia & the common cause will ere long experience. In again revising and reconsidering the means of this country, the Prince Regent has to acknowledge, with the truest gratification, that the results of the campaign, have far exceeded what could have been then hoped for. It was not possible to calculate upon the career of Russian successes, enabling them to march in the depth of winter without a halt from the banks of the Moskwa to the shores of the German Ocean; that the barrier of the Oder would be passed; that Prussia would so soon be incorporated in exertion and in alliance with Russia, against France; and that so wide a field for British Commerce and enterprize should be thus suddenly opened throughout the north of Europe.

His Royal Highness is willing to acknowledge, that a state of Continental affairs so auspicions opens new facilities to Great Britain, for supporting Her allies, and as freely admits the claim they have to look to Him for every practicable assistance. Your Lordship will, however, be aware that altho the additional scope given to the commerce of Great Britain, may facilitate our remittances abroad, it does not in any material degree augment our faculty of raising a greater amount of funds at home, which can be expended within the year. The limit of our exertions abroad is to be found in these two principles combined, & your Lordship in discussing these subjects will endeavour to make them understood.

After the most anxions examination of the question, I have the satisfaction to acquaint your Lordship that exclusive of the charge of the Russian fleet, which may be estimated at about £ 500,000, & which it is proposed to take upon Great Britain, the Prince Regent hopes to find Himself enabled, after

providing for the two millions already destined to sustain the Prince Royal's operations in the north of Germany, to undertake to set apart, two additional millions sterling payable in London as a direct aid to Russia & Prussia. As this will carry the whole sum to be remitted to the Northern Powers within the year (exclusive of the charge of the Russian fleet to be defrayed here) to four millions sterling, it is for the interest of all parties that as large a portion of the value should be taken in military effects as possible; as the exchanges of the north which are connected with & affected by the exchange of Great Britain with all other countries, must still render large pecuniary remittances highly disadvantageous, if not ruinous, in point of terms, and may thereby diminish to so great an extent the sum which would be realized upon the continent, that, while Great Britain might be bringing serious distress upon her finances at home by the magnitude of Her sacrifices, the common cause abroad, would, by no means, receive a proportionate advantage.

The task of dividing the two millions between Russia & Prussia is one that the Prince Regent would be glad to leave altogether to the convenience of those Powers; but as some suggestion from His Royal Highness may be acceptable on this subject, He would propose that two thirds of the whole sum should be applicable to the service of Russia, and one third to that of Prussia which will make the total aid to Russia, including the charge of Her fleet £1,833,334, and to Prussia £ 666,666 — being an addition of £2,500,000 to the unexampled exertions already undertaken by Great Britain in support of the common cause.

I am now to call your Lordship's attention to the memorandum No. 2 received from Count Lieven. His Excellency has been instructed to represent the extreme distress to which the armies are exposed for want of specie, and the inapplicability of the Russian paper to most of the principal articles of military expenditure, a difficulty which increases in proportion as they are removed from the frontiers of the Russian Empire, & which has become so serious and alarming as to induce His Imperial Majesty to turn His attention to the creation of some medium which might be applied to payments, and the credit of which might be sustained as well by the security on which it rested, as by the capital, being repayable at a fixed and not too distant a period; the holders being entitled also to an interest whilst it remained unliquidated in circulation.

This project has been considered with the attention which every suggestion coming from His Imperial Majesty cannot fail to command: and altho considerable practical difficulties are foreseen in giving effect to such a measure, yet the desire which animates the Prince Regent to second by all possible exertions, the liberal and glorious efforts which the Emperor of Russia is now making for the deliverance of Europe, will not suffer Him to hesitate in bearing His share in such an arrangement, if it can be successfully reduced to practice. Your Lordship is therefore authorized to admit the principle laid down in this paper so far as to treat and to agree if practicable with respect to its execution; subject however to the following limitations:

1st. That the total sum for which the allies vizt. Great Britain, Russia & Prussia shall be conjointly answerable under the limitations hereafter stated, shall not exceed £ 5,000,000.

Onden, Desterreich u. Preußen 1813. II.

44

2dly. That the respective Powers shall be separately liable to the repayment, at the period named, of the capital with interest at 5 per Cent in the following proportions

--

3dly. That the period of repayment shall not be earlier than 1. July 1815, or within six months after a definitive Treaty of Peace, if that shall sooner take place.

This condition is material to be attended to, in order that the exertions of the allies, in carrying on the war, may not be crippled by incumbrances that would fall due at too early a date.

4thly. The sum for which Great Britain is to be answerable, must not only be limited in amount as above stated, but the obligations must be so regulated in their issue and administration, as not to expose her to be liable either to the quota of other Powers, or to losses arising from forgery or official mismanagement.

5thly. That the sum so to be created shall be applicable solely to the expenditure of the armies in the field, and that it shall be issued under the superintendance of a commission named by the three Powers, and shall be destined to the use of the Russian & Prussian armies in the proportion of 23 for the former and 3 for the latter.

6thly. That the advances so to be made whether of subsidy or federative paper, shall be progressive; the monthly instalments to be agreed upon in a treaty or convention.

7thly. That the official assurances, already interchanged between Great Britain and Russia, not to treat for Peace except in concert, should be reduced into a formal shape, Prussia being included; and that the three Powers should engage to unite their arms and their councils with a view to such arrangements as may be best calculated to secure the independance of Europe.

Sthly. That, in consideration of the extraordinary exertions which Great Britain agrees to make, Russia should engage to employ, exclusive of garrisons, not less than 200,000, & Prussia not less than 100,000 effective men in active operations against the enemy; and the three Powers are to be respectively entitled to receive satisfactory proofs that the said quotas are kept constantly complete, and may further station such military officers at the several allied armies as may be necessary to keep them accurately informed of the operations in progress..

Should an arrangement, founded on the above principles, be concerted by your Lordship with the Courts of Russia and Berlin, the result of the pecuniary provision for the service of the North (Russian fleet included) will be as follows. — Great Britain makes Herself answerable to furnish in the course of the year to

*) estimating the expences of the Russian fleet in England at £500,000,

Great Britain undertakes to make Herself liable to the further sum of £2,500,000 on the 1st July 1815, or six months after Peace. Total aid £7,000,000.

The extraordinary funds applicable to the exclusive military service of Russia and Prussia deducting the Two millions to Sweden and Her auxiliaries, and also the £ 500,000 payable here to the Russian fleet would be

As Russia and Prussia are ultimately liable to liquidate half the federative paper, the charge to Great Britain for the separate service of those Powers will be in 1813 2,000,000, 1815 2,500,000.

Your Lordship will receive with this dispatch the necessary full-powers authorizing you to treat and conclude on the several points above referred to.

As it will probably be found most expedient that a joint Treaty of Concert and subsidy should be signed with Russia and Prussia, similar full powers will be entrusted together with a copy of these instructions to Major General Sir Charles Stewart who will be directed to act in concert with your Lordship in carrying them into effect. It is also intended that he should be a signing party to the Treaty as His Majesty's Minister accredited to the Court of Berlin.

Your Lordship will receive enclosed a representation with an explanatory map, which has been presented by Count Munster, relative to the interests of His Majesty's Hanoverian Dominions.

The obvious inconvenience to which the Electoral Government must be exposed from the intervention of the Bishoprick of Hildesheim, and the small territories of Minden and Ravensberg in the midst of the Hanoverian territory makes the incorporation of these inconsiderable possessions of essential importance to the free and tranquil enjoyment of the ancient dominions of His Majesty in Germany.

Your Lordship will represent these considerations without delay to the Emperor of Russia, and you will acquaint His Imperial Majesty that the British Government, as well from a sense of duty to His Majesty as from a grateful recollection both of the sufferings and services of His Hanoverian subjects in the common cause, cannot but feel the most lively interest that, in any general arrangement of the north of Germany, these claims should be attended to.

The Prince Regent disclaiming all views of mere aggrandizement on the part of the Electorate and limiting His pretensions solely to the territories above specified which are essential to the more convenient enjoyment of the antient patrimony of his family, relies with confidence on the friendly interposition of His Imperial Majesty for giving effect to these, His limited and moderate views. His Royal Highness trusts that His Prussian Majesty will not feel less disposed to gratify His wishes with respect to an arrangement which is calculated to remove all future jealousies and misunderstandings between their respective States.

With a view of giving effect to this object, Your Lordship will propose in any treaty you may conclude with the Courts of St. Petersburgh and Berlin, that it should be stipulated in a secret article that these concessions shall be secured, upon a Peace, to His Majesty in his Electoral Character. - You will also take care that the territories of Brunswick shall be understood and declared to be comprehended in what is referred to in the secret Article of the Treaty of Kalish as the „Antient possessions of the House of Hanover“

With this reserve and a due attention to the indemnities to be provided for Denmark in the North of Germany under the late treaties, in case that Power should join the Confederacy, the Prince Regent will be disposed most cordially to concur in reestablishing His Prussian Majesty in His former extent of power and authority in the north of Germany.

A copy of this despatch will be transmitted to Sir Charles Stewart with instructions to make a communication to His Prussian Majesty of these His Royal Highness's sentiments. Sir Charles Stewart will be directed to concert with Your Lordship as to the Execution of his instructions on this Subject.

63.

Sir Ch. Stewart to Baron Hardenberg.

Dresden, le 30. Avril 1813.

Le Soussigné Envoyé Extraordinaire et Ministre Plenipotentiaire de sa Majesté Britannique ayant considéré la Proposition que lui a faite S. Ex. M. le Baron de Hardenberg Chancelier d'Etat de S. M. le Roi de Prusse, d'entamer avec lui conjointement avec le Plenipotentiaire de S. M. l'Empereur de toutes les Russies les premiers Arrangemens d'un traité de Subside avec l'Angleterre, a l'honneur de lui faire remarquer qu'à son avis il lui serait très difficile, ne sachant rien encore des Instructions de Monsieur de Jacobi, ni des idées générales de la Prusse à ce sujet, mais surtout n'étant nullement autorisé à se concerter avec le Ministre de S. M. l'Empereur, d'entrer dans des détails quelconques pendant l'absence de Milord Cathcart.

Ayant cependant le plus grand désir de faciliter cette Negociation de son côté autant que possible, le Soussigné s'empresse de mettre sous les yeux de S. Ex. Mr. de Hardenberg des idées générales d'un projet de Traité par lequel l'Angleterre s'engagerait, sous de certaines Conditions prealables dont il aura l'honneur de s'aboucher avec S. Ex. dans la suite, à venir au Secours