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Hopes that Canning has received the telegram recommending Lieutenant Duncan 46th Native Infantry as organiser of the new Police in Pegu. Praises Duncan. The Income Tax is now accepted as a matter of course, admits that he was wrong in expecting trouble when the tax was first mentioned. The Arms Act has passed without comment in Madras. A Rifle Club has been set up but it is for sporting purposes and has no connection with the Arms Act. The Licence Bill is satisfactory, and its publication has cleared up matters greatly. Thinks more might have been made of the Stamp Act, and also that salt could be more heavily taxed. The Madras Government has readily agreed to all the suggestions about the Military Police. Hopes soon for a reply about the reduction of the Army. The Military estimates are alarming, and can be reduced. Thinks the Moveable Columns insisted upon by the Commander in Chief might be done away with. The men returning from China should be sent home. The estimate of military expenditure is not much to be relied upon, the details are not sound. The number of European troops might be safely reduced. There is wastage in the Public Works Department even the famous Godavery scheme has still not been sufficiently tested, discusses this. Mistakes have been made over the Irrigation Company.