No. 35

1. Since I had the honor of addressing you on the 15th of July
last, concerning the Gold fields in the interior of the continent north
of the 49th parallel of latitude, which for the sake of brevity, I
will hereafter speak of as the "Couteau Mines," (so named after the
Tribe of Indians who inhabit the country), I have received further
intelligence from my correspondents in that quarter.

2. It appears from their reports that the auriferous character of
the country is becoming daily more developed through the exertions of
the native Indian Tribes who having tasted the sweets of gold finding,
are devoting much of their time and attention to that pursuit.

3. They are however at present almost destitute of tools for
moving the soil, and of washing implements for separating the gold from
the earthy matrix and have therefore to pick it out with Knives or to
use their fingers for that purpose; a circumstance which in some measure
accounts 
for the small product of gold up to the present time, the
export being only about 300 ounces since the 6th of last October.

4th The same circumstance will also serve to reconcile the
opinion now generally entertained of the richness of the gold deposits
by the few experienced Miners, who have seen the "Couteau" country with
the present paucity of production.

5. The reputed wealth of the "Couteau Mines" is causing much
excitement among the population of the United States Territories of
Washington and Oregon, and I have no doubt that a great number of people
from those Territories will be attracted thither with the return of the
fine weather in spring.

6. In that case difficulties between the natives and whites will
be of frequent occurrence and unless some measures of prevention are
taken the country will soon become the scene of lawless mis-rule.

7. In my letter of the 15th of July, I took the liberty of suggesting the appointment of an Officer invested with authority to
protect the natives from violence and generally as far as possible to
maintain the peace of the country.

8. Presuming that you will approve of that suggestion I have as a
preparatory step, towards the proposed measures for the preservation of
peace and order this day, issued a proclamation declaring the rights of
the crown in respect to gold found in its 
natural place of deposit
within the limits of Fraser's River and Thompson's River Districts,
within which are situated the "Couteau Mines," and forbidding all
persons to dig or disturb the soil in search of Gold until authorized on
that behalf by Her Majesty's Colonial Government.

9. I herewith forward a copy of that proclamation, and also of the
regulations since published setting forth the terms on which Licenses
will be issued to legalize the search for gold on payment of a fee of
ten shillings a month payable in advance. [Marginal note: Enclosures 1
& 2]

10. When Mining becomes a remunerative employment and there is
proof of the extent and productiveness of the gold deposits I would
propose that the License fee be gradually increased, in such a manner
however as not to be higher than the persons engaged in mining can
readily pay.

11. As it is particularly desirable to place a legal check on the
movements of American citizens and to prevent them from entering the
British Territory either for Mining or other purposes, I propose having
the Proclamation and the License regulations now issued, published in
the Oregon and Washington Territory weekly Journals, so that the laws
regulating and legalizing the search for gold may be generally known,
and that American citizens may not have the excuse of ignorance to plead
in extenuation of breaches of the law.

12. My authority for issuing that Proclamation, seeing that it
refers to certain Districts of Continental America, which are not
strictly speaking within the Jurisdiction of this Government may perhaps
be called in question, but I trust that the motives which have
influenced me on this occasion, and the fact of my being invested with
the authority, over the premises, of the Hudson's Bay Company; and the
only authority commissioned by Her Majesty within reach, will plead my
excuse. Moreover should Her Majesty's Government not deem it advisable
to enforce the rights of the Crown as set forth in the Proclamation, it
may be allowed to fall to the ground, and to become a mere dead letter.

13. If you think it expedient that I should visit the "Couteau
Mines," in course of the coming spring or summer, for the purpose of
enquiring into the state of the country, and authorize me to do so, if I
can for a time conveniently leave this Colony, I freely place my
services at the disposal of Her Majesty's Government.