the chief difficulty of importance which has not yet been effectually met is the paucity of labor; this does not, however, exist to the extent of materially checking any of the important operations connected with the production of the tea, but it is felt in the arrear of various descriptions of work, in providing bricks for building, and in the preparation of a stock of seasoned timber and boards for building and box-making; while the out factories would be benefited by a larger proportion of agricultural labor.  Great advance, however, has been made by the superintendent in the employment of Assamese labor in contract work:  under the arrangement he has established, these contracts are now, for the most part, fulfilled with much punctuality, and there is reason to expect that this system of labor will be further extended.  The Kachorie Coolies are a valuable class of laborers, but they do not appear to be sufficiently numerous, or to emigrate in sufficient numbers to afford with the native Assamese a supply of labor altogether equal to our wants, so as to render the concern independent of Bengal labor.

The tea lands are for the most part advantageously situated, within convenient reach of water-carriage, either by the ‘Dickhoo,’ ‘Desang,’ and ‘Dehing’ rivers, or by means of small streams leading to them.  The Plantations of the Satsohea and Rookang forests, and on the banks of the Tingri in the Northern Division, are all valuable centres of extension in each district.  The lands suitable for tea cultivation are ample in extent, and of the highest fertility; while the Hill Factories of the Southern and Eastern Divisions, although secondary in importance, are, as regards extent and quality of soil, equally eligible as bases of extension.

The prospects of the future, I entertain no doubt, will keep pace with the satisfactory results that have hitherto been realised, looking to the sound organisation that now exists in our establishment at Assam, an organisation that has already taken healthy root, and must in its growth gain strength and permanence.  I think we may safely calculate, after the current year, upon an annual increase in our production of 40,000 lbs. of tea, until a larger system of operations can be matured, of which the basis is already laid down, in the new lands cleared and sown during the past cold season, averaging 225 to 250 poorahs; and this extended basis will be doubtless followed up by annual extensions of similar, if not larger, area.  The concern is now taking a position which will place it on a scale of working commensurate with the objects entertained upon the first incorporation of the company, the profits now likely to be realised being adequate to all the outlay necessary.”

The prices in the last two years in London have been fully maintained at 1s. 3d. to 4s. 4d., according to sorts.  Of Assam tea, the sales in the London market in 1851 amounted to 2,200 packages, against