Note 1 — Appendix.

C.—I suppose there will be no necessity now to obtain the areca-nuts as ordered in the Instructions from Colombo of March 23, 1695, but that these nuts are included among the articles open to free trade, so that they may be now brought from Jaffnapatam through the Wanni to Tondy, Madura, and Coromandel, as well as to other places in Ceylon, provided the payment of the usual Customs duty of the Alphandigo,1 which is 7½ per cent. for export, and that it may also be freely transported through the Passes on the borders of the Wanni, and that no Customs duty is to be paid except when it is sent by sea. I understand that the same will be the rule for cotton, pepper, &c., brought from the Wanni to be sent by sea. This will greatly increase the Alphandigo, so that the conditions for the farming of these must be altered for the future accordingly. If the Customs duty were also charged at the Passes, the farming out of these would still increase, but I do not think that it would benefit the Company very much, because there are many opportunities for smuggling beyond these three Passes, and the expenditure of keeping guards would be far too great. The duty being recovered as Alphandigo, there is no chance of smuggling, as the vessels have to be provided with proper passports. All vessels from Jaffnapatam are inspected at the Waterfort, Hammenhiel and at the redoubt Point Pedro.