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In July 1782, in a change of government, Thomas Townshend became Secretary of State for Home and American Affairs ,, and assumed responsibility for organising an expedition against Spanish America.
Like his predecessor, Lord Germain, he turned for advice to Arthur Phillip.
A letter from Phillip to Sandwich of 17 January 1781 records Phillip's loan to Sandwich of his charts of the Plata and Brazilian coasts for use in organising the expedition.
Phillip's plan was for a squadron of three ships of the line and a frigate to mount a raid on Buenos Aires and Monte Video, then to proceed to the coasts of Chile, Peru and Mexico to maraud, and ultimately to cross the Pacific to join the British Navy's East India squadron for an attack on Manila.
The expedition, consisting of the Grafton, 70 guns, Elizabeth, 74 guns, Europe, 64 guns, and the Iphigenia frigate, sailed on 16 January 1783, under the command of Commodore Robert Kingsmill.
Phillip was given command of the Europe.
Shortly after sailing, an armistice was concluded between Great Britain and Spain.
Phillip learnt of this in April when he put in for storm repairs at Rio de Janeiro.
Phillip wrote to Townshend from Rio de Janeiro on 25 April 1783, expressing his disappointment that the ending of the American War had robbed him of the opportunity for naval glory in South America.

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