I had always intended (provided I had obtained your permission) to have proceeded with the report of the committee to Madras, as I was sensible I should never be able to convey to you by letters the whole of that important information I had obtained of the real state and temper of the majority of the officers of the Company's army on the coast, who, though apparently united in one confederacy, were actuated by widely different motives, and took very different views of the nature of the scene in which they were engaged: and of these different shades in their situation and intentions it appeared to me most essential you should have the fullest information, as this knowledge was evidently the only basis upon which any arrangement could be made for the settlement of the whole question, without having recourse to an open and declared rupture, which I ever understood it was your earnest desire to avoid till the last extremity. As I found the changes which had been effected left me without any fear of the garrison of Masulipatam departing from their duty during my absence, I thought it my duty, after I had completed the investigation with which I was charged, to exercise that discretion which you had given me before my departure from Madras, and proceed in person to report the result of my investigation. I communicated this intention to Major-General Pater, the commander of the division, who arrived at Masulipatam on the 20th July, and it met with his fullest concurrence and approbation.

I heard, before my departure, of the 2d battalion of the 10th regiment of native infantry having refused to march; but as that event did not appear likely to be immediately followed by any open act of contumely or disobedience in the Hyderabad force, and as it produced no commotion whatever in the garrison of Masulipatam, it was an additional excitement to the resolution I had adopted, as I expected to have arrived at Madras (by travelling in the rapid manner I did) before any determination had been taken upon this act of mutiny and disobedience, and to have furnished information that might have aided your judgment in deciding upon that important question.

As I always conceived that it was the object of Government to reclaim, if possible, the minds of the officers, I directed my whole attention, during the period I was at Masulipatam, to this great object. I therefore cautiously abstained from any attempt to discover the sentiments of either the European or native soldiery. Such an attempt must have been instantly known, and would have inflicted an irremediable wound on the minds of the officers, and have been certain to precipitate that crisis which it was my labour to avoid.

To evince that I have not been deceived in the expectations I formed of the change of feeling in the affairs of the garrison of Masulipatam, I enclose an extract of a letter from an officer, in whose correctness I place entire confidence. The resolutions which the committee of Masulipatam have agreed to consider, are such, no doubt, as it would be impossible for Government to have acceded to; but they exhibit a most important change from former violence to comparative temper and moderation; and their agitation shows that these officers reject all share in the demands made in that paper which is termed their Ultimatum by the Hyderabad committee. It must be recollected, that in cases like the present, where the minds of a large body of men have been greatly disturbed, that their return to reason is likely to be as gradual as their departure from it: and I can have no doubt, from what I know of the present temper and inclination of some of the senior officers in the northern division, as well as in other quarters of this army, that had not the recent acts of the force at Hyderabad led to those measures which Government has thought it its duty to adopt, they would have seized with avidity any opportunity that the indulgent considerations of Government for their past errors had afforded them, of reclaiming themselves and others from the deep crimes into which they had plunged, and of restoring to its former name and glory a service which the rash madness of some of its members threaten with ruin and destruction.

It remains for me only to state, and I do it with deep regret, that, as far as I can judge, late occurrences have annihilated every hope of the garrison of Masulipatam (I speak with the exception of the artillery company) remaining faithful to its duty; and I fear there are several corps in the division, the officers of which will be disposed to follow their example.

I entreat you to pardon the length of this letter, as well as the freedom with which I have stated my sentiments. I can have no desire but to show that I have not been false to that confidence by which I was honoured; and that I have laboured with zeal, and not without success, (at least as far as the scene in which I was employed was concerned,) to promote the public interests.

I have the honour to be,
Honourable sir,
Your most obedient servant,
(Signed) JOHN MALCOLM.

Madras,
1st August, 1809.