Separate, Confidential

It is commonly reported by the Newspaper Press in California, and on
the authority of those Prints, repeated here, that a British Steam
Packet variously stated as the "Fingal", and by other accounts the
"Trent" was boarded some time last month, on the high seas by an
armed party detached from the United States Corvette "Jacinto" under
the Command of Commodore Wilkes; and that the Confederate
Commissioners, Messrs Mason and Slidell, who were among the
passengers on board, were, in violation of international Law and the
rights of the Flag, seized upon and forcibly removed, notwithstanding
the protest of the Master, who had no means of resisting the violence
by which he was threatened.

2. As it is feared that complications may grow out of so rash and
insolent an act, Endangering our friendly relations with the United
States, I think it incumbent on me to review our means of defence,
and the course which ought to be taken by this Government in the
event of hostilities being declared.

3. The Naval Force at present here, consists of Her Majesty's steam
Frigate "Topaze", Captain The Honourable
J.W.S. Spencer;
the "Hecate" Surveying Ship;
with the "Forward" and "Grappler" Gun Boats. With the
exception of the Forward, whose boilers are worn out and
unserviceable, these Ships are all in a thoroughly efficient state.

4. Our Military Force consists of the Detachment of Royal Engineers
stationed in British Columbia, and the Royal Marine Infantry
occupying the disputed Island of San Juan; forming in all about 200
rank and file.

5. The United States have absolutely no Naval Force in these waters,
beyond one or two small Revenue Vessels; and with the exception of
one Company of Artillery, I am informed that all their regular Troops
have been withdrawn from Oregon and Washington Territory; but it must
nevertheless be evident that the small Military Force we possess, if
acting solely on the defensive, could not protect our Extensive
frontier even against the Militia or Volunteer Corps that may be let
loose upon the British Possessions.

6. In such circumstances I conceive that our only chance of success
will be found in assuming the offensive and taking possession of
Puget Sound with Her Majesty's Ships, re-inforced by such bodies of
local auxilliaries as can, in the Emergency, be raised, whenever
hostilities are actually declared, and by that means effectually
preventing the departure of any hostile armament against the British
Colonies, and at one blow cutting off the Enemy's supplies by sea,
destroying his foreign trade, and entirely crippling his resources,
before any organization of the inhabitants into military bodies can
have effect.

7. There is little real difficulty in that operation, as the Coast
is entirely unprovided with defensive works, and the Fleet may occupy
Puget Sound without molestation.

8. The small number of regular Troops disposable for such service
would necessarily confine our operations to the line of coast: but
should Her Majesty's Government decide, as lately mooted, on sending
out one or two Regiments of Queen's Troops, there is no reason why we
should not push overland from Puget Sound and establish advanced
posts on the Columbia River, maintaining it as a permanent frontier.

9. A Small Naval Force entering the Columbia River at the same time
would secure possession, and render the occupation complete. There
is not much to fear from the Scattered population of Settlers, as
they would be but too glad to remain quiet and follow their peaceful
avocations under any government capable of protecting them from the
savages.

10. With Puget Sound and the line of the Columbia River in our
hands, we should hold the only navigable outlets of the Country,
command its trade and soon compel it to submit to Her Majesty's Rule.

11. This may appear a hazardous operation to persons unacquainted
with the real state of these Countries, but I am firmly persuaded of
its practicability; and that it may be successfully attempted with a
smaller force, than, in the event of war, will be required to defend
the assailable points of our extensive frontier, which will be
attacked on all sides if we remain entirely on the defensive, and
neglect to provide full occupation for the Enemy at home.

12. In any case it will be my first duty, on war being declared, to
provide for the defence of Her Majesty's Possessions by raising and
organizing a local Militia to co-operate with Her Majesty's regular
Forces. The people will no doubt be prepared to make many sacrifices
on behalf of their Country, but even with the best possible
disposition on their part, funds will be wanted for the Equipment and
Sustenance of such a force which it is utterly impossible for this
Colony to furnish. I therefore beg Your Grace will be pleased
to favor me with definite instructions on this point, so that I may
be in a position to take every advantage of circumstances, and may
not involve Her Majesty's Government in any Expenditure for which
they may be unprepared.