Horse-breeding is an enterprise of which much was expected, but so far the Company has not made much profit by it. Yet there is no reason to despair, and better results may be hoped for. Your Honours must remember that formerly in the islands Delft, Hoorn, and Enkhuizen all kinds of horses were bred together; so that but few good animals were obtained. In 1690 and 1691 orders were given to shoot all horses that were too small or defective, and to capture the rest and send them to Colombo and Coromandel. The latter were sold at Negapatam by public auction, while the rest were given to soldiers on the opposite coast in the Company's service, who used the animals so badly that they were soon unfit for work. In this way the islands have become destitute of horses, and the only thing to be done was to send there some good mares and two or three Persian stallions for breeding purposes. So far no good horses could be obtained, because a foal has to be 4 or 3 1/2 years old before it is fit for use. It is only since 1692, 1693, and 1694 that we had good stallions, and this accounts for the fact that no foals have yet been obtained. The deficit is at present Fl. 8,982.9, so that it would seem as if expenditure and trouble are the only results to be expected from this enterprise; but it must be remembered that at present there are on the island of Delft alone about 400 or 500 foals of 1, 1 1/2, 2, and 2 1/2 years old, while there are also a number of horses on the island "de Twee Gebroeders." The expenditure was incurred mostly in the purchase of the Persian stallions, and this expenditure has not been in vain, because we possess now more than 400 horses, each of which will be worth about a hundred guilders, so that the whole number will be worth about 40,000 guilders. In compliance with the orders by His Excellency van Mydregt of November 29, 1690, these animals must be sold at Coromandel on account of this Commandement, and the valuation of the horses may be determined from the fact that the Prince of Tansjour has accepted one or two of them in lieu of the recognition which the Company owes him yearly for two Arabian horses. For this reason and in compliance with the said orders the first horses captured must be sent to Negapatam, so that the account in respect of horse-breeding may be balanced. As the stallions kept on the islands have become too old, application has been made for younger animals, and also for five or six mares from Java, which have been granted by His Excellency the Governor and the Council in their letter of April 29, 1695. Your Honours are further advised not to sell any horses from the island of Delft for less than Rds. 25 and from the islands "de Twee Gebroeders" for less than Rds. 35 to the Company's servants, as they fetch more than that at the public auctions in Negapatam. Even this is a favour to them; but I noticed that the horses from Delft have been sold at 15 and those from Hoorn and Enkhuisen at Rds.