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Privy Council, Whitehall, London. To Court of Directors, East India Company, London

Queries from the Privy Council to the East India Company, relating to the Cape of Good Hope, with Mr. Scott's answer, to the effect that the China and India trade should remain the monopoly of the East India Company but that there should be free trade with Europe and America. The Company could not he injured economically by making the Cape a completely free port but politically it would be unwise as it would allow the colonization of India and this would result in more mercenaries for the Indian states. Enclosed in 31.

Craig, Sir James Henry, Castle of Good Hope

An instruction, to be published, ending the old Board of Commissioners of the Court of Justice (composed of burghers and servants of the Dutch East India Company) and setting out the powers and duties of the Burgher Senators. Their duties are widespread, including bridges, roads, canals, taxation, watchmen, fire service, farming, windmills, accounts, licensed trades and food.

Encloses 24.

Suggestions respecting the Cape of Good Hope

Advises that the government should not be left to the East India Company, as the Dutch had done, but should be vested in a Governor and Supreme Council; gradual improvements can be made to the fiscal system and to the Dutch system of judges and magistrates; trader should be free except for the East Indian trade which must remain a monopoly of the East India Company; the real advantage of the Cape to Britain is the security it gives to the Indian empire.

(Rood.).

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