Mss Eur F699/1/1/1/7/15

Regrets that the reduction in expenditure for 1860/61 is not to be greater, Canning really must use the paring knife with a ruder hand. He cannot see why such a large expenditure is necessary, and hears on all sides that expenditure during the Mutiny was reckless. It is natural that nothing should be neglected in such an emergency, but the larger the expenditure was then, the easier the task of reduction afterwards should be. The reduction in public expenditure should be doubled, and the level brought down to the pre-war expenditure. Reverts to the Calcutta Council: if greater power is to be given to individuals, the men must be of high calibre. Wood would take the President of the United States with his Cabinet as the model. The very best men from all parts of India should be put at the heads of the Departments and used as Councillors. Agrees with Canning that it was a mistake to make the Legislative Council a debating society, Wood told Canning this before he went to India. Dalhousie was responsible for this, but it is now too late to deprive the Legislative Council of its publicity. Thinks it would be easier to put non-official members into a Legislative Council for each Presidency than into one for India. Asks if Canning thinks the Governor General and his Cabinet could be given power to legislate for India. Thinks the present evil of India is too much system and centralisation. Does not think the Judges should be on the Presidency Legislative Councils. The great object in putting outsiders on the Council would be to learn what the world says of taxation, and yet that part of the business can hardly be left to the local legislatures. The Council all concurred against Canning's new tax, but could not decide on any alternative. Canning will have to make up his own mind or a licence tax or on income tax. The last Despatch from China makes war more likely. The Council is against postponing the expedition to so late a time as that suggested by Lord Clyde. Canning talks of sparing six regiments in May, four in Feb would be preferable. Asks for artillery, which he fears Canning may be not able to spare. Regrets that the Germans have been broken up.