Sir,

I am happy to inform their Lordships that I have received an Express from Sir George Collier, acquainting me that on the 7th of July the Flora Captain Brisbane, and he in the Rainbow fortunately fell in with the Hancock and Boston going into Port with the Fox which they took on the Banks of Newfoundland on the 7th of June, and that the Hancock and Fox were taken and carried into Halifax. The Boston made her escape by running away.

Lieutenant Lloyd in the Penguin Armed Sloop fell in with a Sloop Privateer of Ten Guns on the Banks, on the 17th of June and after an Engagement of half an hour the Privateer struck her Colours to His Majesty's Sloop, but perceiving some of the Penguins principal Rigging shot away which would prevent her making Sail for some time, the Privateer set all the sail he could and got away.

Lieutenant Garrett in the Bonavista has taken and brought in a Schooner loaded with Naval Stores and Tobacco.

I have the pleasure to inform you that since my last of the 11th of June nothing material has happened on the Banks; I have heard of some small Privateers boarding several Bankers and plundering them of their Sails, Cordage, and Provisions, but cannot learn that any very considerable damage has been done the Fishery; I think myself exceedingly unfortunate that none of the Squadron has been able to take any of them notwithstand­ing they are all kept Cruizing as much as possible and are always near the Fishing Ships. I must further beg leave to observe to you, that the Trade from this Island is much distressed for want of Mediterranean Passes, the Thirty you inclosed to me were all disposed of in a very few days, had you sent a Hundred I cannot think it would have been sufficient.

His Majesty's Ships Surprize and Spy returned from a Cruize a few days since and are refitting for Sea with all expedition. I am sorry to say the Surprize still continues sickly.

I must beg you to acquaint their Lordships that it is absolutely neces­sary the Martin should go home this fall; as she is very foul, has been twice ashore, and has neither Sails or Stores of any kind owing to a neglect of the Navy Board. Indeed the Spy is not much better, for she is very foul and greatly in want of every specie of Stores both Boatswain and Carpenters.

Inclosed I transmit the State and Condition with the Destination of the Squadron under my Command, and am Sir [&c.]

[Endorsed] V. Ad: Montagu 3 Inclos Rd 8 Septr