Number 5.
Sir

A Proposition having been made to me by the Commander of the Rebel Forces for an Exchange of Prisoners, Number for Number and Rank for Rank, I have thought it for His Majesty's Service to concur therein.

I have in Consequence directed that some American Prisoners taken by the Milford in an Armed Vessel from Boston² should be conveyed in the Rainbow to Halifax; and have desired Commissioner Arbuthnot to take the necessary Measures for effecting a suitable Exchange, with the Assistance of Sir George Collier, whom I have ordered to remain at Halifax for the better Protection and Security of that port.

Observing that the King's Service has received great Prejudice in the Decrease of the Ships' Complements by the re-capture of Vessels the property of His Majesty's disaffected Subjects, taken and manned by the Cruizers of the Squadron; I have recommended to the several Captains when making Prize of such Vessels, to take out the Crews with the most valuable parts of their Cargoes, and destroy the Vessels: Until the constitutional Authority of Government is so far restored in some part of the Colonies, that the Benefit intended by the restraining Act of the last Session of Parliament, may be better secured to the Captors than the present disordered State of the Colonies will admit. I am Sir [&c.]