No. 7

I have the honor to acknowledge the receipt of Secretary Sir John
S. Packington's [Pakington's] Despatch of the 18th December last,
stating that he had brought my recommendation with respect to the
exploration and survey of the east coast of Vancouver's Island, under
the notice of the Lords Commissioners of the Admiralty, and their
Lordships opinion that preparatory to making any survey, it would be
desirable that some competent persons should make themselves acquainted
with the pilotage of the principal channels and Ports of the District
with 
the view of inducing vessels to proceed there, for the coal or
other produce.

2. In reply to that communication I beg to state, that every thing
in my power shall be done to carry that suggestion into effect.

*

Since the date of my letter of the 27th August 1852, to which Sir
John S. Packington refers, in his said despatch, some progress has been
made towards the attainment of a better knowledge of the navigable
passages in the Archipelago of De Arro, the principal channels having
been explored, and repeatedly traversed during the past winter and
spring months, by the vessels of the Hudson's Bay Company with a
favourable result, so far as regards the depth of water, which is
ascertained to be sufficient for vessels of the largest class, and it is
the general opinion, that the canal may be navigated by sailing vessels
as far as the 49th degree of latitude with a great saving of time on
the voyage, to the coal mines at Nanaimo, ie Wentuhuysen Inlet, as
compared with the usual route by the Gulf of Georgia, and if Steam be
brought into operation, as will probably soon be the case, the advantage
will be still more decidedly felt, as the 
whole passage between Victoria
and Nanaimo, may be made by the channels of the Archipelago, in the
course of a single day, and with smooth water, in the stormiest weather.
This was actually accomplished by the Hudson's Bay Company's steam
vessel, a small boat of 70 horse power, in the month of January last,
with a sailing vessel, and the Boats of Her Majesty's Ship "Thetis" in
tow; while by the Gulf of Georgia, the voyage would have occupied at

least two days, under the same circumstances; and a longer time in
stormy weather.

3. Whenever it may become the pleasure of Her Majesty's Government
to direct that a survey of this Archipelago be made, I can procure a
pilot at this place, to point out the best channels and the known
dangers of the passage.

That service may also be greatly facilitated by the co-operation of
the Colonial Surveyor, who might be employed in carrying on the survey
by land, tracing the east coast of Vancouver's Island, and fixing the
position of the most prominent head lands, in communication with, and 
at the same time that Her Majesty's Officers are prosecuting the survey of
the Islands; by that means the work would be sooner and more correctly
done, than by either party singly.

4. The progress made in opening the coal works at Nanaimo, has
been rapid, and satisfactory, and the coal field has been traced by
decided indications over a District about four miles in extent. The
principal seam of Coal, which varies between 6 and 7 feet in thickness,
is exceedingly valuable, and is immediately on the coast of a safe and
commodious harbour, and can be shipped at a trifling cost. The depth of
the Mine is about 60 feet, and the galleries, are now sufficiently
extensive to furnish employment for 100 Miners.

Several cargoes of that coal have been exported to California,
where it bears a high character, being preferred for general purposes to
any other coal found in the countries on the Pacific, and it is even
supposed to be not inferior to the best qualities of English Coal.

We have therefore in that District of Vancouvers Island the 
basis of a noble trade, which may be extended to all parts of the northern
Pacific, and your Grace will perceive by the statements here made, how
much the interests of that trade may be advanced, by the publication of
correct charts of the navigable access to the mines, and by the removal
time occupied in making the passage from Victoria.

5. That object has acquired further claims on the attention of Her
Majesty's Government from the circumstance of Coal having been lately
discovered by some American citizens in Bellingham Bay, which is on the
continental shore of America, in north Latitude 48.43.

The discoverers propose to work the coal by means of a Joint Stock
Company, which they are taking measures to raise in California and if
the enterprise succeeds, the coal from the American shore, will come
into competition with that produced on Vancouver's Island.

This will be a disadvantage to the Colony, which may however be
greatly mitigated by judicious management, as labourers can be procured
at a cheaper rate from England, than 
in any part of the United States,
and if a navigable channel be found in the Arro Archipelago, by which
sailing vessels may run direct from this place to Nanaimo without taking
the circuitous route through the Gulf of Georgia, the coal of
Vancouver's Island, may be brought into market, on equal terms with that
produced on the American side.

6. The present sale price of Coal in this Colony is Forty one
shillings and eight pence a ton, in consequence of the present high
price of labour and provisions in the country; I however prevailed upon
the Agents of the Hudson's Bay Company to supply Her Majesty's Steam
Sloop "Virago" with all the Coal she may require while stationed here,
at the rate of Thirty shillings a ton for "Nanaimo", and Twenty five
shillings a ton for the Rupert coal, which is I believe considerably
under the price paid by Her Majesty's ships, for the coal purchased for
the public service, on the coast of Chili.