In order to expedite Mr. MacArthur's Object of exporting fine Wool to England, I have directed One hundred of the finest woolled Ewes from Government Stock to be chosen for this gentleman to add to his own, for which he is to pay Grain into the Stores at the rate of Two Pounds sterling for each Ewe. As I do not consider it an Object for Government to interfere in this pursuit, Seeing that the greatest exertions will be made by Mr. MacArthur, And notwithstanding every attention has been paid to improve the Fleeces of Government Sheep, Yet that Stock will always be a reserve for supplying present and future Settlers with proportions thereof, which will at once save the Necessity of purchasing to Supply New Settlers who have Claims, and preserve a residue for those deserving characters who may be allowed the advantage of exchanging Grain for Ewes, agreeable to my Lord Hobart's Acquiescence with my proposal on that Subject. The number of Male Convicts assigned to Mr. MacArthur for the Care of his Stock, etc., previous to his return, was Sixteen; Since then they have been increased to Thirty, exclusive of those hired and retained in his service who have served their terms. Should Mr. MacArthur wish for an increase, they shall be assigned him when more arrive from England; but your Lordship will observe by the number and employment Return that the Public Labour absolutely necessary to be carried on, and in which Agriculture on the part of the Crown is nearly given up, will not allow of more Men being assigned at present until more arrive. I have, etc., PHILLIP GIDLEY KING. MACARTHUR'S OBSERVATIONS ON SHEEP-FARMING A Report of the State of Mr. MacArthur's Flocks of Sheep, with some observations on the Advantages which may be expected from the Growth of fine Wool in New South Wales. Paramatta, N.S.W., _2nd Oct., 1805._