Work on the defences kept Yule in Singapore and its neighbourhood until the end of November, when he embarked for Bengal.  On his return to Calcutta, Yule was appointed Deputy Consulting Engineer for Railways at Head-quarters.  In this post he had for chief his old friend Baker, who had in 1851 been appointed by the Governor-General, Lord Dalhousie, Consulting Engineer for Railways to Government.  The office owed its existence to the recently initiated great experiment of railway construction under Government guarantee.

The subject was new to Yule, “and therefore called for hard and anxious labour.  He, however, turned his strong sense and unbiased view to the general question of railway communication in India, with the result that he became a vigorous supporter of the idea of narrow gauge and cheap lines in the parts of that country outside of the main trunk lines of traffic."[36]

The influence of Yule, and that of his intimate friends and ultimate successors in office, Colonels R. Strachey and Dickens, led to the adoption of the narrow (metre) gauge over a great part of India.  Of this matter more will be said further on; it is sufficient at this stage to note that it was occupying Yule’s thoughts, and that he had already taken up the position in this question that he thereafter maintained through life.  The office of Consulting Engineer to Government for Railways ultimately developed into the great Department of Public Works.

As related by Yule, whilst Baker “held this appointment, Lord Dalhousie was in the habit of making use of his advice in a great variety of matters connected with Public Works projects and questions, but which had nothing to do with guaranteed railways, there being at that time no officer attached to the Government of India, whose proper duty it was to deal with such questions.  In August, 1854, the Government of India sent home to the Court of Directors a despatch and a series of minutes by the Governor-General and his Council, in which the constitution of the Public Works Department as a separate branch of administration, both in the local governments and the government of India itself, was urged on a detailed plan.”

In this communication Lord Dalhousie stated his desire to appoint Major Baker to the projected office of Secretary for the Department of Public Works.  In the spring of 1855 these recommendations were carried out by the creation of the Department, with Baker as Secretary and Yule as Under Secretary for Public Works.

Meanwhile Yule’s services were called to a very different field, but without his vacating his new appointment, which he was allowed to retain.  Not long after the conclusion of the second Burmese War, the King of Burma sent a friendly mission to the Governor-General, and in 1855 a return Embassy was despatched to the Court of Ava, under Colonel Arthur Phayre, with Henry Yule as Secretary, an appointment the latter owed as much to Lord Dalhousie’s