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Replies to Lord Canning's questions about the trade and customs tariff of Bushire. In 1855-56 the whole trade to the Persian Gulf amounted to approximately 68 lacs imports, and 59 lacs exports. Imports from Bushire were approximately 27 lacs and exports 2 lacs. Of the imports from Bushire 21 lacs were treasure. The other chief imports of the Gulf are horses and pearls, but it does not seem that any horses were sent to Bombay from Bushire, and only 77,612 Rupees worth of pearls and precious stones. The goods sent in return are cotton piece goods, tea and sugar, grain, cashmere shawls and indigo. Seven eighths of the trade of Bushire is with Bombay. The customs are farmed out, duties on goods are light and frequently remitted. Probably the best way to encourage trade at Bushire would be to forego all duties for a time. A Persian merchant offered to establish a monthly steamer between Bombay and the Gulf, Elphinstone thinks this is worth encouraging, it would be very convenient at all times, especially if Bushire or Karrack are to be occupied permanently. Elphinstone does not think that the taking up of transports began too early. There are now 16 transports and 12 steamers, and 4 or 6 vessels are wanted for stores. Elphinstone is glad to hear that if a larger expedition is sent, Anson will take command, and hopes that he will be given powers to make terms with the Persian Government. The present force should be large enough, and if Bushire is held after the end of the cold season, one of the European regiments and some of the Artillery might be brought back. The framework of a hospital is being prepared, for Karrack. Doubts whether any improvement could be made in Bushire harbour without dredging, and this would require steam dredgers from England. Has sent a chart of the anchorage, described. Somerset has written to Canning about the military command; Sir Henry Leeke has spoken to Elphinstone about the command of the fleet, probably Leeke is the best man for the job. Hopes to obtain information about the Arab Chiefs on the Persian coast. There is a pensioner of the Indian Government in Bombay, a Persian refugee called Agha Khan. He married one of the old King of Persia's daughters, and is head of a religious sect called the Khojahs. Two years ago he wrote to Dalhousie offering his services against the present King, and no doubt he would be glad to be employed. If he was made use of, he would have to be protected afterwards, it is doubtful whether this would be worthwhile. Elphinstone will take no steps to sound the man, unless he hears from Canning.