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Recapitulates news received from India. He feels equally ashamed and indignant as Lord Canning and Mr [Frederick] Halliday in relation to the feelings of indiscriminate revenge against the Indian natives espoused by some Englishmen. Agrees with the appointment of Mr Grant, and with the Circular Order of 31 Jul, though many question the measures. Believes the humane policy of Government will eventually be appreciated. Lord Macaulay thinks Lord Canning should have suspended Habeas Corpus at the Presidencies, searched the houses and seized the papers of the principal Mahomedans; and that Lord Elphinstone should have had the power of hanging the Farsee who raised a song of triumph over the Mutiny. Lord Macaulay's opinions are on the whole favourable to the existing system of governing India; and he is not ill-disposed towards Lord Canning. Regrets that the Court has drawn so heavily on India, upsetting the Council. Comments on a Financial Despatch sent by the present mail. The Government has agreed to the Court's proposed formation of four regiments of Light Dragoons to employ officers of former native cavalry regiments. Unfortunately the Commander in Chief was not consulted, and may make difficulties. Asks what is to be done with the officers of the Line; suggests the employment of the younger officers, ex-Addiscombe, in the Artillery. Suggests the recommendation to the Queen of rewards for loyal chiefs and other natives. Hopes that Mr Wake (for the defence of Arrah) and Mr Boyle have been rewarded. Approves of Colonel Robbins' mission to Australia for horses, states instructions to the Governors of the Colonies about horses. Remarks an Editorial from 'The Times' on the order of 31 Jul (not enclosed). Has just heard by telegram from Trieste of the fall of Delhi.