McHenry transmits the president's thoughts about the concerns expressed by the Indians in the conference of November 24, 1796. He says the president will do what he can to prevent white encroachment, including running the official boundary line. Tells of the treaty between Spain and the U.S. which is re-drawing the U.S. boundary with the Spanish possessions in the Southwest, says that there is no way of knowing when the Spanish garrison at Chickasaw Bluffs will evacuate, but that the permanence of a U.S. garrison there will depend on the Chickasaws treating the U.S. better than Spain in upcoming negotiations. Discusses payment of compensation for Chickasaw land confiscated by North Carolina, and payment by the Chickasaws to compensate a slaveowner for slaves who are now in their possession (having obtained them from the Cherokee). Recommends that the Chickasaws address grievances, etc. through the local Indian agent, Benjamin Hawkins.