Miguel Cayetano Soler, Spanish Minister of the Treasury, informed Intendant Juan Ventura Morales of the report he had received from Foreign Minister Pedro de Cevallos concerning the state of diplomatic negotiations between Spain and the United States Ministers, James Monroe and Charles Pinckney. The North Americans made four basic demands: 1) that Spain indemnify United States citizens for losses caused during the war with England; 2) that Spain indemnify United States ship-owners for losses caused by French privateers operating out of Spanish ports; 3) that Spain indemnify the United States for losses suffered as a result of Spain's suspension of the right of deposit at New Orleans; 4) that the eastern boundary of the Louisiana Territory be the Perdido River (thus giving the United States title to Spanish West Florida) and that the western boundary be the Río Bravo (thus giving the United States, Texas and a part of New Spain). Although the King saw some justice in the first claim, he rejected the others [even after Monroe had modified considerably the United States' pretensions]. Soler discussed in detail the Spanish point of view. His Majesty was willing to concede the [present-day] Sabine River as the western boundary, Soler wrote, but Monroe, finding his proposal unacceptable , considered his mission at an end, had requested his passport, and was preparing to leave Spain. Owing to the uncertain situation created by the failure of the negotiations, Soler had ordered the Viceroy of New Spain and the Intendant of Havana to render to Morales whatever assistance he might need for the defense of His Majesty's dominions.
