This letter was written by Captain Archibald Hamilton from "79 Jermyn Street, St. James's", in London. The letter was written to Robert Dundas, 2nd Lord Melville. Hamilton recounts his experiences in Batavia in January and February 1820, relative to Raffles' foundation of Singapore and the Dutch reaction thereto. "The great jealousy of the Dutch at our new establishment at Singapore was then much the subject of conversation, during the few days I lived on shore at Batavia ... I was persuaded, that our settlement, as an emporeum of British commerce generally; and particularly for the dispersion of British manufacturers in the Eastern archipelago, was of the utmost consequence to the Nation: independant of its' commanding situation ... Upon my arrival in this country i am informed that the important point, whether we are to retain or abandon Singapore, is still the subject of discussion between the British government and that of the Netherlands: and the strong feeling I entertain of the national importance of this new settlement is revived so much, that I am induced to offer a few remarks ... Whether Singapore is viewed in a commercial or in a political light it strikes of great importance to our commercial prosperity and political consequence." He goes on to assess the commercial and strategic importance of Singapore. He also describes the situation at Batavia: "At present the Dutch government still tolerate British merchants at Batavia, and I do not think just at present they can do well without them. British & American ships, notwithstanding their heavy duties carry on almost all the trade, which added to the tin of Banca constitutes I believe the principal source of their revenue." Hamilton adds that " ... the jealousy of the Dutch is so apparent ... that they will as soon as possible get rid of the English merchants of Batavia; and that they will do so the sooner if we abandon Singapore ... then we shall have no depot for British commerce East of Penang, where a Malay trader can anchor his prow, and consequently the whole trade must fall into the hands of the Dutch ... Secondly as to the judicious selection of Singapore as the emporeum ... a mere inspection of the chart appears almost sufficient to prove it ... added to the circumstance of the popularity of the British, as contrasted with the unpopularity of the Dutch flag; must render Singapore the successful rival of Malacca, and whilst in the hands of the English I have little doubt the ruin of that old settlement." Farquhar is praised: "The fortunate selection of Col. Farquhar as the settler, a man of the most mild and conciliating character with all, who has resided for the last 25 years at Malacca, 17 or 18 of which he was governor, and who is beloved by all classes of the inhabitants, is of itself a circumstance of the most propitious nature for this infant settlement." Hamilton goes on to discuss the benefits of Singapore, in particular concerning the distribution of opium from India - "the principal article at all times in bartering ... Singapore again appears of great consequence as an emporeum for the support and encouragement of this important trade."
