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bed, he desires, with his best respects to Lord Shelburne, to acquaint his Lordship with his situation, which detains him, so unhappily for himself, from attending his duty at this very critical conjuncture. The moment he is able to move, he will endeavour to reach London.

In the mean time, Lord Chatham humbly submits as his opinion, that it is advisable, and even necessary, to put off the proceedings in the inquiry, till the final intention of the Company and their application to government, in consequence of this resolution of the general court, can be brought to maturity enough to be laid before parliament. If Lord Shelburne and the rest of the King's servants should concur in this opinion, Lord Chatham begs his Lordship will acquaint Mr. Beckford with what shall be agreed upon, as soon as conveniently may be; and also with the impossibility that Lord Chatham was under of writing to him.

THE EARL OF SHELBURNE TO THE EARL OF

СНАТНАМ.

Hill Street, Monday, half-past eleven, p. m.

MY LORD,

[February 16, 1767.]

I HAVE been honoured this morning with your Lordship's commands by Padmore. Your Lordship will have received the Duke of Grafton's letter

with an account of the present state of the Indian business, which I am extremely glad to find meets your Lordship's intention. His Grace, I take it for granted, has enclosed to you the minute of cabinet, stating their proposal as it stands being unintelligible, with several queries, upon which they were desired to explain themselves. The Duke of Grafton has since seen the chairman and deputy chairman; who said they were infinitely obliged to every lord of the cabinet for not commanding their attendance, as they must have been silent. They desired, for that reason, to put the paper of queries in their pocket, without reading it till they got to the India House, where they would prepare the answer, but were afraid it was impossible to do it so soon as Friday; which leaves it open to Mr. Beckford to state himself as ready, which I understand he is, to go into the inquiry, having delayed it hitherto more out of candour to Mr. Townshend's declaration than his own opinion, which has always been, that it could not be transacted out of parliament, and will give Mr. Townshend and Mr. Conway an opportunity, in answer, to state the matter as it is; that there has been a proposal, which not being sufficiently clear to lay before parliament, has been returned to the directors for further explanation upon it which they have promised to give, but has not yet been received the consequence, I suppose, of which must of course be further adjournment, for at least a week longer.

If this meets your Lordship's idea, I will take care to give it all possible attention, and will make it my business to see Mr. Beckford upon it, and that it shall he properly understood. If it does not, I beg your Lordship to let me have your further commands any time to-morrow. I am sure I need not endeavour to express to your Lordship my concern for the occasion of your delay, or for the inconvenient situation I am afraid you find yourself in. I am, with the greatest truth and respect, Your Lordship's faithful

obliged humble servant,

SHELBURNE.

THE EARL OF CHATHAM TO THE DUKE OF GRAFTON

AND THE EARL OF SHELBURNE.

[In the handwriting of his Secretary.]

Marlborough, Tuesday, February 17, 1767. past 7, p. m.

LORD CHATHAM continues much in the same state he was yesterday, and quite unable to enter into any detail of things; he therefore only begs leave humbly to submit his opinion, that the proposal from the East India Company, vague and extravagant as it is, should not be finally dismissed by the King's servants, but, on all accounts, left to the conclusive judgment of parliament.

Lord Chatham is also of opinion that it seems most advisable and indispensable, that the first pro

ceeding in the continuation of the inquiry should be, to desire to be informed if any applications, and what, have been made from the directors of the East India Company and the servants of the Crown, relative to the state of the Company's affairs, in consequence of the resolution of the general court.

With regard to New York, Lord Chatham desires to submit his opinion, that the disobedience of the assembly of that province to the mutiny act is a matter so weighty, and big with consequences, which may strike so deep and spread so wide, that it ought, on no account, to rest on the advice of meetings of the cabinet, and the course of office; but that the memorial transmitted by the governor of New York, relative to this event, ought, in the proper manner, to be laid before parliament, in order that his Majesty may be founded in, and strengthened by, the sense of his grand council, with regard to whatever steps shall be found necessary to be taken in this most unfortunate business.

Lord Chatham humbly offers to the consideration of the King's servants the above opinions; and also begs that they may be laid, with all duty and submission, at his Majesty's feet.(')

(1) Endorsed, "Copy of a note from the Earl of Chatham to the Duke of Grafton and Lord Shelburne."

THE DUKE OF GRAFTON TO THE EARL OF CHATHAM.

Grosvenor Square, February 22, 1767.

MY DEAR LORD,

THE East India directors brought to me yesterday the inclosed paper (') as an answer to the questions

(1) The following is a copy:

"East India House.

"At a Committee of Treasury, the 20th February, 1767.

"The Committee of Treasury of the East India Company, in obedience to your Lordship's commands, beg leave to lay before your Lordships a more particular state and explanation of the propositions delivered in by them to your Lordships, dated the 6th of February instant.

"1st. By the word 'annexed' was meant, that the possession of the late acquisitions and revenues, mentioned in the propositions, should be declared to remain in the Company for the term they have at present in their exclusive trade, and during the additional term applied for.

"2dly. It is impossible to ascertain the amount of the civil and military establishments in India, which must be different in peace and war, and will be affected by various other circumstances; but it is proposed, that the amount of those expenses shall be adjusted by an account thereof, yearly transmitted by each presidency where they are incurred.

"3dly. The sum proposed to be deducted annually for contingent payments is the interest of the Company's bond debts with a deduction of five per cent. on the sales for payment of warehouse rent, landing, weighing, housing, and delivering of goods, wages, wear and tear of the Company's own vessels, pensions to seamen's widows and others, charges of Poplar Hospital, charges of raising, maintaining, and transporting troops to India, buildings and repairs, and other charges of management and incidental expenses.

"4thly. The sum or proportion proposed to be allowed to the proprietors for profits of trade is a deduction, in the first instance, of a sum equal to the dividend payable to the proprietors. The other necessary purposes (after deduction from

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