Forsyth confirms that his colleagues have agreed to the purchase of four of Ewart's ponies and the stud farm subject to certain conditions. Forsyth recommends that Ewart contact John Ritchie to engage him under terms recommended by Lord Arthur Cecil.

Forsyth welcomes Ewart back from his travels in Mexico and states that he is enclosing a letter from Cecil about the ponies (which are in the process of being purchased by the Congested Districts Board). He makes arrangements to see Ewart.

Forsyth reports that the Congested Districts Board are now ceasing to breed ponies for the crofters as they believe they now have enough stock to keep them going. He thinks that the Board would be happy to purchase the ponies 'Fatima II' and 'Rhona' with their foals and agrees with Ewart that a Highland Pony Society should be formed to make for fairer judging between different breeds.