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Sends a letter from Mr Murray [not enclosed] and a letter from Mr Stevens, the Consul at Teheran with comments. Captain Kemball thinks the Shah intended to invade Baghdad if the war had continued, and if his advances were favourably received at St Petersburg. Describes some Persian intrigues at St Petersburg. It seems likely that Herat has already been annexed, but not likely that the Persians have advanced on Kandahar, their army being very disorganized. News of the peace with Russia seems to have made the Persians more determined to invade Kandahar. If a British expedition is to be sent, Elphinstone hopes that Murray's idea of taking Karrack and Kishun will not be adopted, still less any inland expedition. Recommends the capture of Bushire, with Bunder Abbas made over to the Iman of Muskat. If this was not sufficient, Mohummerah could be taken, and perhaps some other places on the coast. Mohummerah is the property of the Chaab Chief, and he and the other Arab Chiefs should not be confused with the Persian Government.

Enclosed: Letter from Nicholas Stevens, Teheran, 3 Mar, to Lord Elphinstone he is sending notice of the Persian Government's intention to send an army to Kandahar, with a copy of the 'Teheran Gazette' containing the article about Dost Mohamed Khan, by foot messenger to Kandahar. The journey should take 30 days. The Serkeshekzeebushy will carry with him 100,000 Tomans in cash. Should anything like a British force appear in the Gulf before the army leaves Teheran, the Persian Government may after all give up its expedition; at the moment the King is bent upon it. Private.