December 26.

Called by appointment on Lady Macdonald, who came here to speak to me about Sir J. Macdonald's salary and position at Tabriz. She says that after the letter he wrote, representing the inexpediency of Sir H. Willock's remaining as his first assistant and the non-existence of any necessity for two assistants, if the Bengal Government do not recall Willock Sir J. Macdonald cannot remain. She has likewise a good deal to say respecting the salary. I think 9,000£ a year a proper salary. The Ambassador at Constantinople has 8,000£ and a house; but Constantinople is on the sea, and the charge of bringing European goods to Tabriz through Russia is so considerable that 1,000£ a year ought to be added for the charge.

December 29.

Received three letters from Lord W. Bentinck, of July 6 and 8 and August 2. In that of the 6th he speaks of my private letter to Sir J. Malcolm, published in the 'Calcutta Newspaper.' In that of the 8th he sends it to me, the names being altered, and all between brackets being interpolated, and in fact in the light of comment. In that of August 2 he speaks of the temper of the army, &c., and all public subjects. I have sent the three letters to the Duke.

I was glad to have my letter. I can defend every word in it. It contains the simile of the elephants, which I am sorry for, as I fear those described as tame may be foolish enough to endeavour to show they are not so by affecting a degree of vivacity beyond their nature; but still I can defend it.

Lord William describes his position as not agreeable, having to effect the odious work of reduction. [Footnote: Besides the burning question of 'Half- Batta,' Lord W. Bentinck's administration was regarded as hostile in spirit to that of his predecessors, and so disliked by those who had served under them, especially by the military.] He says that in India no man thinks of anything but MONEY, that the local government has incurred great odium by carrying into effect the orders of the home authorities. He recommends Sir Charles Metcalfe as a man standing by Malcolm's side, and fit for the government of Bombay. I a little fear Sir Charles Metcalfe. He is rather too vehement. I doubt whether he would be a safe man. I am quite sure Courtney would be a very unfit man. The Governor of Bombay ought to be an Indian, but who is there?

Lord William represents the Burmese Government as a barbarian Government. He says they have sacrificed all who assisted us, and that the difficulty in retroceding the Tenasserim provinces would be to know what to do with the 35,000 people who have sought our protection.

This report makes the wisdom of our recent policy yet clearer than it appeared before.

December 31.

Read twenty papers on the opium treaties and management in Central India. The Supreme Government have decided upon no longer limiting the extent of cultivation in Malwa, and upon permitting the free transit of the drug. This was expedient because undoubtedly our restrictions led to the most hostile feelings on the part both of princes and people, to the injury of the traders, to violent and offensive interference on our part in the internal policy of foreign States, and to smuggling protected by large bodies of armed men. The smugglers would soon have been Pindarries. This system began only in 1825. It was forced upon the small States, and not upon that of Gwalior, so that smuggling defeated the object.