Mss Eur F699/1/1/1/13/9

Thanks Canning for his letters of 12 and 22 Aug. Is sorry he bothered the Governor General about the Arcot affairs, when he had so much to do. He has since received a hint from the Court about visiting the Provinces, which will be fully acted up to. Canning's news about the probability of an expedition to the Persian Gulf means increased financial difficulties. It seems that something will have to be done about Persia, but he wishes that it need not be done so soon, fears the move may bring on another European war. Sends a paper about the invasion of India [marked on margin, not received] the suggestion about the occupation of Ghusnee seems good. Regrets the Public Works limitation, but will be satisfied with Canning's distribution of the allotted sum. He prefers to have a fixed sum, to be spent at the discretion of the local Government. The Government did not seize upon the offer about the Pegu Division, for they felt they should make a stand about the communications, or rather non-communications, between Madras and Rangoon. The 'Berenice' has arrived, having nearly sunk in a gale. The Government is quite ready to send a Regiment of Cavalry to Pegu. The people in Tanjore received a document which is a word for word copy of the Court's Despatch to the Government of India: nothing is known of from whence it came. Harris has received Canning's telegraph about Forbes' appointment, it may be difficult to carry out as Norton is bringing charges against the Residency officers. The Loan is quiet at present, it should fill up in a few months but war would make a difference. Objects to Vernon Smith's references to him in his budget speech, has recorded a Minute on the subject. Praises Mr Devereux. There is every prospect of a fine season in Madras, though collections are coming in slowly because of an opinion on the law of distraint given by the Government Pleader which necessitates a new Act. Will send a list of available officers as soon as possible. Names Captain Keating, 50th Madras Native Infantry and Captain Hervey, 40th Madras Native Infantry.