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Informs Lord Canning that the British Government will share the extraordinary expenses of the Persian War. The acceptance of terms by the Persians may be a ruse to gain time. He objects to any proposal to take troops beyond the Bolan Bass. Has given a letter of introduction to Mr Loftus, who knows Shuster, the Karoon River and Mohummerah. Sir Henry Leeke has been appointed to the naval command of the Expedition, against the Court's orders. The copies of the Court's orders are enclosed, extracts from or copies of six Marine Letters, 1847-1853. The rate of exchange has been lowered by ½d; 50 lacs were paid into the Treasury within three days of the alteration, and it may be necessary either to close the Treasury, or to raise the rate of exchange. If 'coolie' emigration to the Colonies be entirely stopped, there will be an outcry in England. Recommends for political employment his son Lieutenant W H F Sykes, 3rd Bombay Light Cavalry, on his return from Persia. He still believes 6,000 troops are enough to over-run Persia. Private.

Enclosed: Paper containing 'Extract Marine Letter to Bombay, 28 Jul 1847. no.50', 'Copy Marine Letter from Bombay, 12 Mar 1850, no. 25', 'Extract Marine Letter to Bombay, 3 Jul 1850, no. 50, in reply to the proceeding', 'Copy Marine Letter from Bombay, 20 Aug 1852, no. 39', 'Copy Letter from the Secretary to Government, Bombay Castle, 11 Aug 1852, to the Commander in Chief Indian Navy', 'Extract Marine Letter to Bombay, 23 Feb 1853, no. 7'.