Clearly, Spain was trying to gain time; for reports from Cadiz showed her fleet to be far from ready, several of the ships being leaky. The repairs to the French ships at that dockyard also went on in the most leisurely manner. But on 4th August all was ready. Admiral Mann with a small blockading force having been called by Jervis into the Mediterranean, the French ships set sail, escorted by twenty Spanish sail-of-the-line. The French squadron made for the Bank of Newfoundland and inflicted great damage. Why it did not proceed along with the Spaniards to the West Indies is hard to say. The impact of twenty-seven sail-of-the-line in that quarter would have been decisive; but probably Godoy did not yet feel warranted in throwing down the gauntlet. Pitt and Grenville decided to overlook the gross breach of neutrality at Cadiz, and even now hoped for a change in Godoy's mood. On 26th August Grenville informed Bute that, though England had good cause for declaring war, she would await the result of the recent proposals to Spain. On or about that date Las Casas, the Spanish ambassador, pettishly left London on a flimsy pretext; and two days later Dundas warned the commander-in-chief in Hayti of the imminence of war. Nevertheless, while taking every precaution, he was not to attack the Spaniards until definite news of a rupture arrived. Further, on the 31st (as will appear in the following chapter) Portland despatched orders to Sir Gilbert Elliot, Viceroy of Corsica, to prepare for the immediate evacuation of that island.
It is therefore clear that Pitt and his colleagues used all possible means to avert war with Spain. Bute, acting on orders from London, carried complaisance to lengths derogatory, as he thought, to the honour of Great Britain, and Godoy humoured him to the top of his bent. Thus, on 10th September, in the course of a singular interview, Godoy assured him that, even if war broke forth, it would be brief. If (he continued) England had not annoyed Spain by her naval and colonial policy, the latter might have arranged to find some indemnity, either at the expense of Holland, or else "something on the coast of California. You English have a passion for California, and the trade is in the most flourishing state." Half amused by these dilatory tactics, Bute sought to find out the real state of the case; and he discovered that the Franco-Spanish compact aimed at the joint conquest of Portugal as well as of Naples, Sicily, and Gibraltar, while England was to be compelled to surrender Honduras and Hayti. On the 5th of October he received from Godoy the Spanish declaration of war. It laid stress on the disputes at Toulon, England's seizure of Corsica, Hayti, and Dutch Demerara, besides the founding of British mercantile posts on the River Missouri, which evidently aimed at securing the routes to the Pacific.[394] Of these schemes, the conquest of Portugal lay the nearest to the heart of Godoy.