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States that the Governor of Bushire had made friendly overtures to Captain Jones, but the news of the fall of Herat to the Persians changed his tone. Has received a telegraphic Despatch from Vienna stating that the Persian Government on hearing that Karrak and Bushire had been taken had accepted all the conditions proposed by the English; he does not believe this. Gives his views on the best policy. An indemnity of £2,000,000 is to be exacted; probably the cession of Karrak in perpetuity would be more desirable, as the island will be wanted in connected with the telegraphic cable from the Euphrates to Kurrachee. Dr O'Shaughnessy is to undertake this work, and may not return to India for 2 years. The dismissal of the Persian Prime Minister may not be insisted upon. Sykes disapproves of General Outram's plan to move 10,000 men from Sind through Afghanistan to Herat, in case the demonstrations from Bushire and Shuster fail; Outram should have enough troops to hold the whole of the maritime territory of Persia. Remarks on the mischievous tendency of misrepresentations of Government policy in the Indian newspapers, especially about the annexation of Rajpootana and the movements of Brigadier Chamberlain's force. Much discussion is expected in Parliament on the Persian War. A telegraphic Despatch from Trieste reports the fall of Bushire with the loss of four valuable lives; believes there must have been some blundering, as the place could have been taken without a shot fired. General Stalker is no strategist. Has just heard from the President that the report of Persian acceptance of terms, originated with the Sultan's Agent. A liberal proposal has been received from a company to put two steam trains upon the Indus annually. The requisition for steamers for the Bay of Bengal, will receive attention.