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Writes that the draft paper on a comprehensive system of Police has passed the Board and will no doubt go through the Court. Comments on the proposed system. Explains why a communication from the Secret Committee about Persia bore his signature only; a duplicate copy will follow with the signatures of the other Members. Copies of Mr Murray's despatches to Lord Clarendon have been received, remonstrating strongly against the negotiations with Persia being transferred from him to Lord Stratford at Constantinople. Murray is very sore about the calumny of his name, being associated with Mir Hasheem's wife. It appears that Persia is willing to make all necessary apologies and receive back the Mission, provided that the British make Dost Mahomed retire from Kandahar. The Shah has been informed in reply, that unless his army instantly retires from before Herat, war would be declared. Expects to hear of the raising of the siege in the next account from Persia. The requisition of new machinery for the Calcutta Mint is now before the Board; an outlay of 5 or 6 lacs is likely to shake their nerves, but Sykes hopes the measure will gain a reluctant consent. The drain of silver from Europe for India and China still continues. A gold currency is much required in India, and as the natives are prejudiced against alloyed gold coin, a pure gold coin might be adopted. Has learnt that Lord Hardinge's agreement with the Court has been set aside, and the two Regiments of Dragoons for India are to go out on a war footing. The root of the affair is one of patronage.