r the continuance
of the Anglo-French Alliance, which would have been greatly endangered
by the discussions and explanations that might otherwise have been
forced on.

The various questions of difference between your Majesty's Government,
and that of the United States, have also been settled, and the
diplomatic relations between the two countries are about to be
replaced upon their usual footing. This result will have given great
satisfaction to the commercial and manufacturing interests.

Some discussion will take place as to the Expedition to the coast of
Persia, and some persons will, of course, find fault with the whole
policy pursued on that matter; but people in general will understand
that Herat is an advanced post of attack against British India,
and that whatever belongs nominally to Persia must be considered as
belonging practically to Russia, whenever Russia may want to use it
for her own purposes.

The outbreak of hostilities at Canton[2] was the result of the
decision of your Majesty's officers on the spot, and not the
consequence of orders from home. The first responsibility must
therefore rest with the local authorities, but Viscount Palmerston
cannot doubt that the Government will be deemed to have acted right
in advising your Majesty to approve the proceedings, and to direct
measures for obtaining from the Chinese Government concessions which
are indispensable for the maintenance of friendly relations between
China and the Governments of Europe.

Of domestic questions, that which will probably be the most agitated
will be a large and immediate diminution of the Income Tax; but
any such diminution would disturb the financial arrangements of the
country, and it is to be hoped that Parliament will adopt the scheme
which will be proposed by Sir G. C. Lewis, by which the Income Tax
would be made equal in each of the next three years, the amount now
fixed by Law for 1857 being diminished, but the amount now fixed by
Law for 1858 and 1859 being increased....

Viscount Palmerston hears from persons likely to know, that the
Conservative Party are not more united than they were last Session.
That Mr Disraeli and the great bulk of his nominal followers are far
from being on good terms together, and that there is no immediate
junction to be expected between Mr Disraeli and Mr Gladstone.[3]

Mr Cobden has given it to be understood that he wishes at the next
General Election to retire from the West Riding of