Mss Eur F90/31, no.7

(Letters 1 to 6, 8, 8A, and 11 missing from letter book)

Refers to Wood's letter of 25 December, which he thinks unfair on question of borrowing for irrigation; Govt of India sketched plan for irrigation works spread over series of years for which they might gradually borrow up to given sum; without sanction for this much, no use to make detailed plans; tightness of money market immaterial as little will be required this year; believe necessary loan could be raised in India at 5% or %.5%; if Wood will not agree, only options are to leave work to Companies, or do nothing; Stanley case; defends Bhutan treaty and conduct of troops; petty misfortunes inseparable from mountain warfare – 'a Government who are not able to bear this ought not to go to war, ought not indeed to attempt to hold India'; outlines arguments for advance against Tongso Penlow which has been ordered; denies treaty has had adverse effect on native opinion in India; success of expedition against Yusufzais; state of telegraph lines in India.