WASHINGTON August 6: 1816.

SIR. I have had the honour to receive your letter of the 2d instant, containing the project of an arrangement into which it is proposed that, our respective Governments should enter, for the purpose of giving effect to the principle, upon which I had the honour to acquaint you, in my letter of the 26th lilts, that His Royal Highness The Prince Regent was willing to act in respect to the Naval Armaments upon the Lakes.

The general coincidence of sentiment which exists between our Governments in regard to entering into some arrangement upon this subject, gives reason to hope that, the several parts of it will become matter of easy adjustment, but as, in the consideration of any precise proposition to this effect, reference must necessarily be had to various points connected with the internal administration of His Majesty's Provinces, and to the naval assistance which the ordinary business of a Peace establishment may require, I am not authorized to conclude definitively any agreement as to details, without previously submitting it to my Government.

1 shall therefore immediately forward for consideration the proposal contained in your letter: But I shall, in the mean time, willingly take upon myself to give effect to any arrangement upon which we may mutually agree, for the purpose of suspending the further construction and equipment of armed Vessels upon the Lakes, and of generally abstaining from exertion in those quarters.

I have the honour to be with the highest consideration, Sir, Your most obedient humble Servant

CHARLES BAGOT

The Hon^ble JAMES MONROE

&c. &c. &c.