The farming out of the various duties in this Commandement may be considered as the third source of revenue to the Company in Jaffnapatam, and next to that of the sale of elephants and the revenue derived from the poll tax, land rents, tithes, Adigary, and Officie Gelden mentioned before. The farming out of the said duties on the last of February, 1696, brought to the Company the sum of Rds. 27,518 for the period of one and a half year. The leases were extended on this occasion with a view to bring them to a close with the close of the Trade Accounts, which, in compliance with the latest instructions from Batavia, must be balanced on August 31. The previous year, from March 1 to February 28, 1695-1696, the lease of the said duties amounted to Rds. 15,641, which for 18 months would have been Rds. 23,461 1/2, so that the Company received this year Rds. 4,056 1/2 more than last time; but I believe that the new duty on the import of foreign cloth has largely contributed to this difference. This was proposed by me on January 22, 1695, and approved by the Hon. the Supreme Government of India in their letter of December 12 of the same year. It yielded the first year Rds. 7,100, including the stamping of native cloth with a seal at 25 per cent., while for the foreign cloth no more than 20 per cent. was paid. As Their Excellencies considered this difference unfair, it has pleased them, at the earnest request of the natives, or rather at the request of the Majoraals on behalf of the natives, in a later letter of July 3, 1696, to consent to the native cloth being taxed at 20 per cent. only, which must be considered in connection with the new lease. Meantime the order from Batavia contained in the Resolutions of the Council of India of October 4, 1694, must be observed, where all farmers are required to pay the monthly terms of their lease at the beginning of each month in advance. This rule has been followed here, and it is expressly stipulated in the rent conditions. Whether the farming out of the duty on native and foreign cloth will amount to as much or more I cannot say; because I fear that the present farmer has not made much profit by it, in consequence of the export having decreased on account of the closing of the free passage to Trincomalee and Batticaloa. The sale of these cloths depends largely on the import of nely from the said places, and this having been prevented the sale necessarily decreased and consequently the farmer made less profit. The passage having been re-opened, however, it may be expected that the sale will increase again. With a view to ascertain the exact value of this lease, I sent orders to all the Passes on February 27, 1696, that a monthly list should be kept of how many stamped cloths are passed through and by whom, so that Your Honours will be able to see next August how much cloth has been exported by examining these lists, while you may also make an estimate