The idea of finding a Chinese settlement at no great distance to the northward, still prevailed amongst the Irish convicts; and on the 4th of December, two of them stole the surgeon’s boat, but they only got a few miles to the northward of the harbour when they were obliged to run her on shore.  Some officers who were out a shooting, saw this boat on the beach, and stove a plank in her, that she might not be carried away; they also saw the two men, who ran into the woods; however, a convict who had been six weeks in the woods, and was scarcely able to walk, gave himself up to the officers, and, with their assistance, was able to return to Sydney.

Many of those convicts who left the settlement, as has already been related, came back; some were still missing, and several were said to be killed by the natives.  The miserable situation of those who returned to the settlement, would, it was believed, most effectually prevent any more excursions of the like nature.

On the 5th of December, the Queen transport returned from Norfolk-Island, with the lieutenant-governor of the territory, who was relieved by Lieutenant-Governor King; a detachment of marines who had been doing duty on the island; a party of the New South Wale corps, who were relieved by Captain Paterson, and some convicts, whose times for which they had been sentenced were expired.

By the 7th, the Gorgon was nearly ready for sea, and the detachment of marines who came from England in the first ships was ordered to hold themselves ready to embark, except one captain, three lieutenants, eight non-commissioned officers, and fifty privates, who were to stay at Port Jackson until the remainder of the New South Wales corps should arrive:  those marines who were desirous of becoming settlers, remained likewise, to the number of thirty-one.

Governor Phillip had frequently been solicited by Bannelong, to receive Ballederry, the native who wounded a convict in June, 1791, into favour again, but he always refused; however, on the 14th of December, he was informed that Ballederry was extremely ill.  The surgeon had been to see him, and found him in a fever; and the first question he asked was, whether the Governor was still angry, or if he would let him be brought to the hospital to be cured.  Bannelong had fetched the surgeon to Ballederry, and returned with him to Governor Phillip; who saying he was not angry, and telling him to bring his companion to the settlement, he said he would; so, early the next morning, Ballederry was brought in.  At first, he seemed under great apprehensions, but they presently subsided, on the governor taking him by the hand, and promising that when he was recovered he should reside with him again.  Poor Ballederry appeared to be very ill, and went with the surgeon to the hospital.

Of those convicts who were received from the last ships, one hundred and fourteen males, and two females, died before the 15th of December:  the number of sick had considerably decreased lately; the surgeon’s list being now reduced from six hundred and two to four hundred and three.