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.).

Comments on the views concerning trade at the Cape of Good Hope, expressed by the Court of Directors of the East India Company, Mr. David Scott and Sir Stephen Lushington and then gives his own views; agrees that the East Indian trade be reserved for the East India Company but feels that trade from the West should be open to some extent to foreign ships, with the exception of certain articles which must come from Britain in British ships; in this way foreign ships could sell goods to enable them to pay for repairs and refreshment; suggests that Cape goods be exported in ships of all countries, except tallow and hides, which are needed by Britain, and that European goods be exported from the Cape by any country; refers to the need to protect British fishing rights at the Cape, the method of reforming custom and excise duties and the question of allowing only British immigrants into Cape colony.

Lists the amounts under the names of the various departments.

Names: Mr. Rena, Mr. Brandt, Mr. Baumgardt, Mr. Matthiessen, Messrs. de Wit & Braun. Lombard Bank.

Discusses the possible length and financial burden of the war against France and hopes that the Treasury officials will keep their promises to send funds; is about to leave for the Cape where he trusts he will not remain for more than 18 months.

"Mont secret" instruction arranging protection for convoys leaving St. Helena in February and May for Britain; advises the Admiral of the possible danger from French ships based at Brest intercepting the convoy.

Enclosed in 66.

Explains that a case containing sketches, arabic gum and cinnamon for Earl Macartney has been entrusted to him by Major-General Sydenham at Madras; the case will be cent to Mr. Hercules Ross to await Earl Macartney's arrival.

In letter-book marked 'Letters from England'.

Reserves trade to the East of the Cape of Good Hope to the East India Company.

Copy in letter-book marked 'Letters from England'. Enclosed in 256.

Conveys instruction No.28 relative to the office of Ordinary at the Cape, stating that only the Governor or in his absence, the Lieutenant-Governor may exercise powers of granting licences for marriages, probates of wills and collating to benefices.