y project of a treaty and Hamilton's tariff. Committed to
writing March the 11th, 1792.

It was observable, that whenever, at any of our consultations, any
thing was proposed as to Great Britain, Hamilton had constantly ready
something which Mr. Hammond had communicated to him, which suited the
subject and proved the intimacy of their communications; insomuch, that
I believe he communicated to Hammond all our views, and knew from
him, in return, the views of the British court. Many evidences of this
occurred; I will state some. I delivered to the President my report of
instructions for Carmichael and Short, on the subject of navigation,
boundary, and commerce, and desired him to submit it to Hamilton.
Hamilton made several just criticisms on different parts of it. But
where I asserted that the United States had no right to alienate an inch
of the territory of any State, he attacked and denied the doctrine.
See my report, his note, and my answer. A few days after came to hand
Kirkland's letter, informing us that the British, at Niagara, expected
to run a new line between themselves and us; and the reports of Pond
and Stedman, informing us it was understood at Niagara, that Captain
Stevenson had been sent here by Simcoe to settle that plan with Hammond.
Hence Hamilton's attack of the principle I had laid down, in order to
prepare the way for this new line. See minute of March the 9th. Another
proof. At one of our consultations, about the last of December, I
mentioned that I wished to give in my report on commerce, in which I
could not avoid recommending a commercial retaliation against Great
Britain. Hamilton opposed it violently: and among other arguments,
observed, that it was of more importance to us to have the posts than to
commence a commercial war; that this, and this alone, would free us from
the expense of the Indian wars; that it would therefore be the height
of imprudence in us, while treating for the surrender of the posts, to
engage in any thing which would irritate them; that if we did so, they
would naturally say, 'These people mean war; let us therefore hold what
we have in our hands.' This argument, struck me forcibly, and I
said, 'If there is a hope of obtaining the posts, I agree it would
be imprudent to risk that hope by a commercial retaliation. I will,
therefore, wait till Mr. Hammond gives me in his assignment of breaches,
and if that gives a glimmering of hope that they mean to surrender the
posts,