No. 59

It will probably have appeared to you, as it did to me, that
the discovery of Gold fields on the Kootenay River near the
American frontier, and five hundred Miles from New Westminster,
was one of doubtful benefit to the Colony, and would probably be a
source of anxiety to the Government.

2. In my despatch, No. 41 of the 10th of September, I stated
that I should probably have to establish a Custom House on the
American frontier at the foot of the Rocky Mountains. If the
"rush" continues it may be rather difficult, without a numerous
staff, to collect our import duties in so wild a country. In
every way it seems desirable that we should, if possible, divert
the traffic to the Kootenay Mines from Washington Territory to
the Fraser. With this view the Hudson Bay Company have, with the
promise of Government support, opened a trail from Fort Shepherd
on the Columbia River to the diggings. Already several packtrains
have passed over it, and I trust that the Colonial Secretary Mr
Birch is returning by it at this moment.

3. There is, however it is believed another mode of access
to the diggings from New Westminster. We have steam communication
up the Fraser to Yale, from thence an admirable carriage road takes
the course of the Thompson as far as the Bonaparte river where it
proceeds to the Northward. It is believed that twenty miles above
the mouth of the Bonaparte, the Thompson becomes navigable for
steamers. The two great Lakes, Kamloops and Shushwap through which
the Thompson runs, have a sufficient depth of water, and thus we
hope that steam navigation may be obtained for 110 miles almost
due east, the direction of the Kootenay. From the head waters of
Thompson River a road of from 35 to 40 miles will have to be made
to the Columbia. The south branch of this river it is reported
may be made available for steam navigation up to its source in the
Columbia Lakes, which are close to the Kootenay diggings.

4. I have sent an exploring party to ascertain the practicability
of establishing the communication in the mode I now suggest. It
is not improbable that we shall have, before the close of next year,
steamers and four horse coaches running regularly twice a week to
the foot of the Rocky Mountains as they now do to Cariboo. The
"British Kootenay Pass" affords a passage to the Eastward of
perfect ease compared with the natural difficulties already
overcome on the road through the Cascade Mountains in the Valley
of the Fraser. Therefore if the mines fulfil the promises
anticipated from them, there can be but little doubt that Gold
diggers will be attracted to them from Canada and the Red River
Settlements, and a communication from the Atlantic to the Pacific
established through British Territory.

5. From among the many different spellings of the word
"Kootenay" I have selected that used by Colonel Hawkins, the
Boundary Commissioner, and I mean, subject to your approval, to
make use of it in all official documents.