the free importation of good spirits under a high duty of not less than 3s. or 4s. a gallon."[1] But he had added that he would wait until he received further instructions from the Secretary of State before carrying out this proposal.
The Secretary of State sent extracts from the despatch to the Lords of the Committee of the Privy Council for Trade, and was informed on the 7th March, 1812, that they concurred with Macquarie's views. At once several licenses were given to export cargoes of merchandise and spirits to New South Wales.[2] These cargoes had already been despatched when the Colonial Office heard of the hospital contract.[3] "Many objections," wrote Lord Bathurst, "might be urged to an engagement of this nature, under any circumstances. But I am surprised that you did not foresee the embarrassment which would inevitably be occasioned in the execution of this contract by the adoption of the suggestions contained in your despatch of the 30th April, 1810. … It must be left to your own discretion to take such measures as may appear to you to be best calculated … to do justice to the several parties whose interests are affected by the arrangements which have been made in New South Wales and in this country."[4]
The Governor made the best he could of the difficulty he had created by permitting the spirits to be landed and indemnifying the monopolists for this breach of contract by extending its duration for another twelve months. He justified his conduct in originally making the agreement rather quaintly. "When I recommended that measure" (of free importation) he wrote, "I had no idea of the restriction being taken off by the Government at home. I expected instructions from Your Lordship, authorising me to open the Port here when I conceived it best so to do. … Your Lordship will be pleased to recollect that one half of that period" (of the monopoly) "must have nearly expired before I could expect to receive an answer from Your Lordship, besides concluding that it would be left to me, if permission was given, to make use of it as I saw best and most conducive to the welfare of the Colony."[5]
