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Agrees with Canning that 52 lacs is an enormous initial expenditure for the Persian War; but from the report of Mr Stevens, that the Persian Government have resolved to incorporate Herat with their dominions at any cost, this is only the beginning of expenditure. Comments on General Outram's appointment. Outram will eventually return to Oudh. He has named the Reverend Badger and Captain Playfair as likely to be useful to him; he also wishes Colonel Jacob to have the local rank of Major General so that he may command the Cavalry. The warm clothing for the troops is on its way. Comments on the papers about Duleep Sing's correspondence he thinks they are of no importance. The Court have granted the Oudh family 12 lacs a year, 5 lacs to be in hereditary land Jagheer. The matter of the Nawab of Surat is settled. The Despatch amalgamating the Bengal Marine with the Indian Navy will shortly be sent. The Medical Service Reform Despatch is progressing. The rate of exchange will shortly be lowered, by ½d. In the coming year, the Court will draw on India for 3 millions. Comments on the projected new gun-boats. Remarks that torture in Bombay is not attributable to any countenance given to it by the Civil Service, it is the work of subordinates done in secret. The condition as a sine qua non that Mr Murray be received with the prescribed honours at Teheran before the matter of Herat is considered has been cancelled. The Court is displeased at not receiving trade returns from Bengal. Includes postscript that a telegraphic Despatch has just come from Lord Stratford reporting the Persian Ambassador's promise to withdraw forces from Herat and indemnify the Heratees for their losses. Orders have been sent in reply to insist upon the terms of 28 Oct.

Private.