Mss Eur F699/1/1/1/7/9

Has sent instructions about posting and promoting cadets and ensigns. The native regiments must be reduced, and to add to the regimental organisation only increases the difficulties. There will also be a Despatch ordering inquiry into Plowden's conduct at Nagpore. Mr Ellis has written to Plowden frequently to urge him to do what was right, and only printed the paper in despair. Asks how Canning allowed Plowden to go on so long without making any report. Wood cannot get over the old lady dying without any recognition of her loyalty and good conduct. Hopes that the Chinese may ratify, Bruce and the Admiral were too hasty. Canning will send one European and one or two native regiments to Hong Kong and Canton as soon as possible, and act on the instructions as to the discharged men. Fears that many may have left India. The Admiralty will not hear of any of the discharged men being taken into the Marines. Canning must be prepared to send further troops, two or even three European regiments altogether. The Marine Brigade is reduced to a battalion. Lord Clyde gives very bad accounts of the disposition of the men and not much better of the officers of the local Europeans. If it had not been for the white mutiny, there would be no question about keeping up a local army, but the question is now much altered. Asks for papers relating to the Delhi prize money. There is no official answer to the inquiry about Dhar. Suggests a cipher for telegraphic communication. Is sorry that the Loan in India is not doing well, but it has been a success in England. Approves of the scheme of licence duty, suggests that it be made general as soon as possible. Bowring has sent an account of the growth of opium in China which looks threatening for the Indian opium revenue. Is uneasy about the income from opium and would be glad to see other taxes imposed. Knows the difficulties of the succession duty. Elphinstone favours a house tax, but Wood thinks this would fall on the people who pay the licence duty. Elphinstone says that Canning approves generally of his scheme for the settlement of Enams, Wood believes Elphinstone's scheme is not easily reconcilable with Trevelyan's. Wood is disposed to sanction a paper currency, and Wilson is in favour of it. Wood cannot deal with the Council question until Parliament meets, because any such change as is contemplated requires an Imperial act. Asks what alterations Canning would make in the Legislative Council to add to its usefulness. Canning might send European regiments from Madras to China, and perhaps from Bombay. If he sent three European regiments England could strengthen the remaining regiments by adding to each company. Still hopes it may not be necessary to send any number of troops to China. Asks how Canning will deal with the contingents or subsidiary forces of the native princes. Half the Council are away, and he cannot get much help for the next fortnight or so.