Note 2 — Notes to Appendix.

E.—I must confess that I do not understand how the subject of free trade can be brought forward again as being opposed to the Company’s interests, as is done again with regard to the 24 casks of coconut oil which the inhabitants have to deliver to the Company, which are properly paid for and are not required for the purpose of sale but for the use of the Company’s servants, or how any one dares to maintain that the lawful sovereign who extends his graciousness and favours over his subjects and neighbours would be tied down and prejudiced by such rules. It is true that the coconut trees in Matura are required for the elephants, but in Galle and Colombo it is not so; but the largest number of trees there is utilized for the drawing of surie2 for arrack, &c. It is true that some nuts are exported, but only a small quantity, while the purchasers or transporters have to sell one-third of what they export to the Company at Rds. 2 a thousand, while they must cost them at least Rds. 3. Out of these we had the oil pressed ourselves, and this went largely to supplement the requirements for local consumption, which are very large, since the vessels also have to be supplied, because as a matter of economy the native harpuis (resin) has been largely used for rubbing over the ships, so as to save the Dutch resin as much as possible, and for the manufacture of this native resin a large quantity of oil is required. Your Honours must therefore continue to have all suitable casks filled with oil, and send to Colombo all that can be spared after the required quantity has been sent to Coromandel, Trincomalee, and Batticaloa, reserving what is necessary for the next pearl fishery and the use of the Commandement. In order to avoid difficulties, Your Honours are required to send to Colombo yearly (until we send orders to the contrary) 12 casks of coconut oil and 2 casks of margosa oil, which are expected without failure. For the rest we refer to what is said under the heading of Coconut Trees.