Mss Eur F699/1/1/1/13/88

Sends papers in reply to Canning's letter on the Godavery. Denison intends to complete the rail route for the cotton, and if Canning insists on the continuance of work on the canal and lock it will be impossible to complete the cotton route in time for the June 1862 cotton crop. Comments on the navigation of the Upper Godavery. All the traffic will come from the upper country. The estimated cost of the first part of Haig's plan is about 30 lacs. As the river in the hot season does not contain enough water for either irrigation or navigation, Haig proposes to bring to the river enough water for all purposes. Denison thinks that this part of Haig's plan could be improved. Comments on the amount of cotton grown in the upper districts and the chances of selling it in and out of India. Thinks that money is better spent on the river than on a railroad. Denison hopes that nothing more will be done about the Legislative Councils before Nov, he hopes to leave Madras for three months. It seems to Denison that the functions of the Supreme Legislature are practically unlimited. Will send by the next mail papers on the military force required for Madras: he can dispense with one European Regiment and 22 native Regiments. Is expecting a collection of ferns from Australia for Lady Canning.

Enclosed: Copy of a letter from Denison to G R Haywood (of the Cotton Supply Association) 9 Jul. Denison thinks that Australia may eventually supply part of the cotton required for the factories, but until labour is much cheaper only a few thousand pounds will be grown. But in India the supply may be extended almost indefinitely. To enable the cotton to be brought to the east coast of India, Denison has arranged to make a light railroad round each of the major obstacles on the Godavery, which can be worked by bullocks. This scheme has the advantage that cotton can be brought down river in June 1862, and this route can be used whilst more permanent works on the river itself are undertaken. Thinks the Cotton Supply Association should send out an Agent to set up a depot for cleaning and packing the cotton as near the place it is grown as possible.