No. 39

I have the honor to forward Copy of a letter which has been
addressed by the present Senior Naval Officer on this Station to
the Secretary for the Admiralty, pointing out how totally we are
dependent on the Americans for our communication with Europe.

2. Until recently a subsidy was given by the Government of
Vancouver Island to the English Vessel "Labouchere" for carrying
the mails from San Francisco to Victoria and the Authorities of
British Columbia employed a Vessel under the American Flag for the
same purpose. On the loss of the "Labouchere" a double Subsidy
was given to the United States Vessel in order to induce her to
call at Victoria on her way to New Westminster. The Conveyance
of the Mails under this arrangement entailed an expense of six
hundred pounds a trip: an amount beyond the ability of the now
united Colony to pay. As soon as the contract expired, I declined
to renew it. Not too soon—as the Government of Vancouver Island
is still in debt to the San Francisco Mail Company for ten Voyages,
having only paid the subsidy for two. The Government of the Mainland
had however paid all its obligations under this head punctually.

3. The Legislative Council has now placed at my disposal
a sum of twelve hundred pounds a year for keeping up Communnication
with San Francisco and securing the receipt of the European Mails.
I need hardly say that this amount is altogether insufficient to
secure the object sought to be obtained. We may perhaps induce
steamers to call once a month during the summer but we shall
have to trust to accident for maintaining our Communication with
the Mother Country during the winter.

4. Perhaps Your Lordship will forgive me for saying that
some assistance should be given by the Imperial Treasury for
keeping up the connection between England and this important
Colony, containing as it does the head quarters of the Pacific
Squadron. The steamers which ply between Panama and San Francisco
are under no contract even with the United States Government for
the conveyance of mails and may of course at any time refuse to
carry ours. The Telegraph is in the hands of the Americans and in
the event of a rupture with the United States the intelligence
would not reach this Colony or Her Majesty's Ships until it might
suit the convenience of the enemy.

5. I understand that the Royal Mail Steam Company is willing
to establish steam communnication between Panama and British
Columbia if 7 1/2 per cent per annum be paid on the sum of
£250,000 which would be required to provide the vessels to keep
up a fortnightly communication on the Pacific in connection with the
steamers leaving Southhampton on the 2nd and 17th of each month.

6. My own belief is that the Revenue of the Colony will,
after the present year, prove sufficient for us materially to
assist in lightening the expense of any line of Steamers which
may be established under the direction of the Home Government.