On the following morning the Swedes were discovered; as soon, however, as they perceived the English approaching, they retired, and took shelter in Carlscrona, behind the batteries on the island, at the entrance of that port.

Sir Hyde sent in a flag of truce, stating that Denmark had concluded an armistice, and requiring an explicit declaration from the court of Sweden, whether it would adhere to or abandon the hostile measures which it had taken against the rights and interests of Great Britain?
The commander, Vice-Admiral Cronstadt, replied, "That he could not answer a question which did not come within the particular circle of his duty; but that the king was then at Maloe, and would soon be at Carlscrona." Gustavus shortly afterwards arrived, and an answer was then returned to this effect: "That his Swedish majesty would not, for a moment, fail to fulfil, with fidelity and sincerity, the engagements he had entered into with his allies; but he would not refuse to listen to equitable proposals made by deputies furnished with proper authority by the King of Great Britain to the united northern powers." Satisfied with this answer, and with the known disposition of the Swedish court, Sir Hyde sailed for the Gulf of Finland; but he had not proceeded far before a despatch boat from the Russian ambassador at Copenhagen arrived, bringing intelligence of the death of the Emperor Paul, and that his successor Alexander had accepted the offer made by England to his father of terminating the dispute by a convention: the British admiral was, therefore, required to desist from all further hostilities.
It was Nelson's maxim, that, to negotiate with effect, force should be at hand, and in a situation to act.

The fleet, having been reinforced from England, amounted to eighteen sail of the line, and the wind was fair for Revel.

There he would have sailed immediately to place himself between that division of the Russian fleet and the squadron at Cronstadt, in case this offer should prove insincere.

Sir Hyde, on the other hand, believed that the death of Paul had effected all which was necessary.