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Informs Lord Canning that he has sent off a telegram about Lord Ellenborough's resignation, because his premature publication of the Secret Despatch of 19 Apr had been disapproved. Since the sending of the telegram the matter has been debated in both Houses; describes course of debates. The House of Commons disapproved of Canning's original draft of Proclamation, but the almost universal feeling was favourable to Canning and his administration. Has no doubt that Canning's intentions towards the people of Oudh agree with what was suggested in Lord Ellenborough's Despatches of 24 Mar and 5 May and Canning's Despatch explaining the Proclamation sets forth fully the extenuating circumstances in favour of the natives of Oudh. Derby cannot concur in the conclusion at which Canning arrived, and would have greatly preferred the course recommended by Sir James Outram and others. Regrets that those to whom the Proclamation was addressed will believe that confiscation will be made the rule, and restitution the exception. Both the British Government and Canning have the right to complain of the injustice done to both by the suppression of every private letter which Canning wrote home, in ignorance of the change of Government. Vernon Smith did not pass on any of the letters, and the Government has still only seen the few extracts which have been read before the House of Commons. Among them there is one of the greatest importance, which was intended to accompany the draft Proclamation. The Despatch of 19 Apr was written in ignorance of Canning's explanation, and in the hope that it might be in time to prevent an ill-advised step. Had the private letter been received by Government, the Despatch would have been very different. Derby fears the publication of the Despatch may weaken Canning's influence to some extent in India; but hopes Canning will not resign. Difference has only arisen on this single point, and the Government will continue to give Canning the same cordial support. Fears there will still be a long guerrilla war in India. Lord Stanley may succeed Ellenborough. Private.