The 25th I received a letter from Captain Pepwell, then in Dabul roads, stating,—­That, according to advice, he had stopped the junk bound for Mokha; but having well weighed the caution I had given him respecting the correspondence between that prince and Masulipatam, where the Solomon then was, he had freed her without spoil.  By this courtesy he had procured such good entertainment as is seldom had in the Indies, being allowed free trade, with a promise of taking 300 pieces of broad-cloth yearly, and had sold a good quantity of lead for ready money, besides some ordnance.  This part of his procedure I do not like much, as tending to arm the Indians, and the Portuguese, their friends, against the Moguls.  If these courtesies proceeded not from the junk being still under his command, they give good prospect of an yearly sale at that port.  However, the freeing of this junk gives me good assurance that Captain Pepwell will do nothing prejudicial to the Company, and will deliver himself honestly from the jealousies entertained of him at Dabul.  He signifies his intention of proceeding to Calicut, and if that factory be not likely to succeed, he proposes transferring it to Dabul.

The 27th, by a foot-post from Masulipatam, I received advice that the Solomon had put to sea, and that the Hosiander was arrived from Bantam, with the bad news of the loss of the Hector and Concord, while careening in the roads of Jacatra, in the island of Java; but with the good news that the Dragon, Clove, and Defence were laden homewards from Bantam.  I took the opportunity of this post to convey a letter to the governor of Dabul respecting the overture made by him of trade to that port; and, though I had no great opinion of the place, I would neither have it entirely neglected, nor would I encourage the next fleet to proceed there, unless on better assurance than a forced friendship, and offers made when their junk was in our power.  I signified the causes of our having stopped their goods formerly for refusing trade to Sir Henry Middleton; but finding him now better disposed, and willing to establish a league of trade and amity, and to take a good quantity of our cloth, I required to know if he were hearty in these motions; and willing to act as a man of honour; as a pledge of which, I requested him to procure for us a firmaun from his sovereign, with such privileges as were fit for merchants, with a royal engagement under his seal to fulfil all the friendly offers made to us by this officer; desiring this firmaun might be transmitted to me with all expedition, to my present residence at the Mogul court.  By this, I said, I should be satisfied that they meant to treat us with good faith, and on its reception, I would undertake, on the behalf of the king of England, that a firm and lasting peace should be established with his master, whose subjects should have free passage on the seas without molestation from our ships; and should send yearly a ship to trade at his port, or, if desired, should establish a resident factory there.  I have no doubt, either through fear or favour, that some good sales may be made there yearly, but I doubt of being able to procure any valuable investments.