Next day, 2d July, we had sight of land to the north, which joined the coast already mentioned, having a bay which we named St Lunario, across which our boats went to the north cape and found the bay so shallow that there was only one fathom water a league off shore.  N.E. from this cape, and 7 or 8 leagues distant, there is another cape, having a triangular bay between, compassed about with shelves and rocks about ten leagues from land.  This bay has only 2 fathoms water, but appeared to penetrate far into the land towards the N.E.  Passing this cape, we observed another head-land N. and by E. All that night we had very bad weather and heavy squalls, so that we could carry very little sail.  Next morning, 3d July, the wind was from the west, and we sailed north that we might examine the coast, where we found a gulf or bay about 15 leagues across, and in some places 55 fathoms deep.  From the great depth and breadth of this gulf, we were in hopes of finding a passage through, like that of the Castles before mentioned.  This gulf lies E.N.E. and W.S.W.  The land on the south side of this gulf is of good quality and might be easily cultivated, full of goodly fields and meadows, quite plain, and as pleasant as any we had ever seen.  The north side is altogether hilly, and full of woods containing large trees of different kinds, among which are as fine cedars and firs as are to be seen anywhere, capable of being masts for ships of three hundred tons.  In two places only of this side we saw open meadows, with two fine lakes.  The middle of this bay is in lat. 47 deg. 30’ N. We named the southern cape of this bay Cape Esperance, or the Cape of Hope, as we expected to have found a passage this way.

On the 4th of July we went along the northern coast of this bay to look for a harbour, where we entered a creek which is entirely open to the south, having no shelter from the wind when in that quarter.  We named this St Martins Creek, in which we remained from the 4th to the 12th of July; and on the 6th, going in one of our boats to examine a cape or head-land on the west side, about 7 or 8 leagues from the ships, and having got within half a league of the point, we saw two fleets of canoes of the savages, 40 or 50 in all, crossing over from one land to another, besides which there were a great number of savages on shore, who made a great noise, beckoning to us to come to land, and holding up certain skins on pikes or poles of wood, as if offering them for barter.  But as we had only one boat and they were very numerous, we did not think it prudent to venture among them, and stood back towards the ships.  On seeing us go from them, some savages put off in two canoes from the shore, being joined by five other canoes of those which were crossing, and made towards us, dancing and making many signs of joy, as if inviting us to their friendship.  Among other expressions we could distinctly make out the following words, Napeu tondamen