Read Meyendorff's 'Tour in Bokhara.' It contains all the information I want as to the commerce between Bokhara and Russia. We can easily supply Bokhara with many things the Russians now furnish, and with all Indian goods cheaper by the Indus than the Ganges; but what the Bokharians are to send us in return I do not well see, except turquoises, lapis lazuli, and the ducats they receive from Russia. We may get shawls cheaper by navigating the Indus. _December 21._ Read the memorandum the Chairs gave me respecting the application of steam navigation to the internal and external communications of India. It has been prepared carefully and ably, and is very interesting. It suggests the navigation of the Euphrates to Balis or Bir by steam, and thence the passage by Aleppo to Latakia or Scanderoon. It likewise suggests that it might be more expeditious to cross the desert from Suez to Lake Menzaleh, or direct to the sea. _December 22._ Wrote to Lord Hill, telling him of Sir G. Walker's dangerous illness, and intimating the importance, under the present circumstances of Madras, of having not only a good soldier as Commander-in-Chief, but a man possessed of good civil qualities. Sent a copy of this letter to the Duke. _December 25._ Read a memorandum of Jones on the last mission to Lahore, and a very long secret despatch in 1811 upon the subject of Runjeet Singh's attempt to establish himself on the left bank of the Sutlege, and his retreat in consequence of remonstrances and military demonstration on the part of the British Government. _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.