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Congratulates Lord Canning on his accession, and thanks him for his letter from Cairo. The Court has thanked the Pacha for his civility to Canning, and Clarendon will probably do the same. Sends an extract of a letter the writer sent to Lord Dalhousie on the attitude of the Legislative Council. By the next mail he will send an important financial despatch, asks Canning not to lose his ideas about economy, for the deficiency of £2,600,000 which Vernon Smith has to announce annually to the House of Commons will one day cause a widespread complaint. Finance and Police are the great wants of Indian administration in his view. The acceptance by Russia of the Austrian ultimatum leads to hope of peace; the Czar will now turn his ambition to the East. The situation in Persia looks dangerous, Charles Murray has behaved indiscreetly. At Clarendon's suggestion has sent instructions to Lord Elphinstone to be prepared to act if the Persians occupy Herat. Brief comments on the political situation in England.

Enclosed: Extract of a letter from Vernon Smith to Lord Dalhousie, about Mr [Barnes] Peacock's speech on the affair of the Administrator General. Peacock assumed an independence of the Court's Instructions which would, if carried out, set up the Legislative Council above the Governor General and above the Home authorities and make the Government of India impossible. The prohibition of the export of saltpetre is also involved.