This country is subject to very heavy storms of thunder and lightning, several trees having been set on fire, and some sheep and dogs killed in the camp since we landed.

All the provisions we have to depend on until supplies arrive from England are in two wooden buildings which are thatched. I am sensible of the risk but have no remedy.

The greatest part of the stock brought from the Cape is dead, and from the inattention of the men who had the care of the cattle, those belonging to Government and two cows belonging to myself are lost. As they have been missing three weeks, it is probable they are killed by the natives. All my sheep are dead and a few only remain of those purchased for Government. The loss of two cows and four bulls falls very heavy. The horses do very well.

With respect to any resources that the Cape of Good Hope might afford, I have only to observe that the strong westerly winds that prevailed all the year between the Cape and the southern extremity of this country would render a passage to the Cape very tedious if attempted to the southward, and little less so if ships go to the northward. Batavia and our own settlements are at a great distance; and when the transports are sailed I shall have only the Sirius to employ on a service of this kind; and as I should not think myself at liberty to send either to the Cape or the East Indies unless in a case of the greatest necessity, it would in all probability then be too late. I mention these circumstances just to show the real situation of the colony, and I make no doubt but that supplies will arrive in time, and on which alone I depend. The provisions sent to support this colony for two years being put on board three ships, was running a very great risk, for had they separated and afterwards been lost the consequence is obvious, for this country at present does not furnish the smallest resource except in fish, and which has lately been so scarce that the natives find great difficulty in supporting themselves. Any accident of this kind will be guarded against, of course; and soldiers or convicts when sent out will be put on board the ships with provisions to serve them for two years after they land; and in our present situation I hope few convicts will be sent out for one year at least, except carpenters, masons, and bricklayers, or farmers, who can support themselves and assist in supporting others. Numbers of those now here are a burthen and incapable of any kind of hard labour, and, unfortunately, we have not proper people to keep those to their labour who are capable of being made useful.

Officers decline the least interference with the convicts, unless when they are immediately employed for their (the officers) own conveniency or when they are called out at the head of their men; the saying of a few words to encourage the diligent when they saw them at work, and the pointing out the idle when they could do it without going out of their way, was all that was desired. The convicts were then employed in clearing the ground on which the officers were encamped, and this they refused; they did not suppose they were sent out to do more than garrison duty, and these gentlemen (that is, the majority of the officers) think the being obliged to sit as members of the Criminal Court an hardship, and for which they are not paid, and likely think themselves hardly dealt by, in that Government had not determined what lands were to be given to them. But I presume an additional force will be sent out when the necessity of making detachments in order to cultivate lands in the more open country is known, and from four to six hundred men, will, I think, be absolutely necessary.

If fifty farmers were sent out with their families they would do more in one year in rendering this colony independent of the mother country as to provisions than a thousand convicts. There is some clear land which is intended to be cultivated, at some distance from the camp, and I intended to send out convicts for that purpose, under the direction of a person that was going to India in the Charlotte, transport, but who remained to settle in this country, and has been brought up a farmer, but several of the convicts (three) have been lately killed by the natives, and I have been obliged to defer it until a detachment can be made.

The natives are far more numerous than they were supposed to be. I think they cannot be less than fifteen hundred in Botany Bay, Port Jackson, and Broken Bay, including the intermediate coast. I have traced thirty miles inland, and the having lately seen smoke on Lansdown Hills, which are fifty miles inland, I think leaves no doubt but there are inhabitants in the interior parts of the country.

Lists of what articles are most wanted will be sent by the Commissary, and I am very sorry to say that not only a great part of the clothing, particularly the women's, is very bad, but most of the axes, spades, and shovels the worst that ever were seen. The provision is as good. Of the seeds and corn sent from England part has been destroyed by the weevil; the rest is in very good order.

The person I have appointed Provost-Marshal is likewise very useful in superintending the carpentry; the person sent out by the contractor, who assists the Commissary in the delivery of provisions, one that was clerk of the Sirius, a master smith, and two farmers, are very useful people, and I beg leave to recommend them to Government. The granting them lands would draw their attention from their present occupations.

A convict who fled to the woods after committing a robbery returned after being absent eighteen days, forced in by hunger; he had got some small support from the people, and the few fish left by accident on the beach after hauling the seine, and had endeavoured to live amongst the natives, but they could but give him but little assistance; he says they are now greatly distressed for food, and that he saw several dying with hunger. It is possible that some of the natives at this time of year might find it easier to support themselves on birds and such animals as shelter themselves in the hollow trees, than on fish; but then, I think, they would not go to the top of the mountains, where at present it must be very cold. I intend going to Lansdown or Carmarthen Hills as soon as the weather permits, if it is possible, and which will explain what is at present a mystery to me—how people who have not the least idea of cultivation can maintain themselves in the interior part of this country. When I went to the westward, in hopes of being able to reach the mountains, we carried six days' provisions, and proceeded five days to the westward; returning we were very short of provisions, and our guns only procured us two scanty meals.