Peel to Rogers (Permanent Under-Secretary)

I am commanded by The Lords Commissioners of Her Majesty's
Treasury to transmit Copy of a Report received from The Commissioners
of Audit, dated 16th May, having reference to the accounts for
British Columbia to 31 December 1859, with Copies of Statements
A, B, and C, and to request you will move the Duke of Newcastle to
favor their Lordships with his opinion whether, under the circumstances
stated by The Commissioners of Audit, the several fragments to which
attention is drawn should be allowed.

With regard to the Military Expenditure from September 1858 to
June 1859, amounting to Seventeen thousand and forty six pounds,
three shillings and two pence (£17,046.3.2), the particulars of which are
given in Statement C, and which expenditure was reserved "as Subject to
allowance or disallowance hereafter by Her Majesty's Government,"
it appears to their Lordships that the same forms a portion of the
General Military and other Expenditure which is to be adjusted between
the Imperial and Colonial Governments in accordance with the
arrangements which formed the subject of Mr Fortescue's letter
of 22nd April and the reply of this Board of 16th Ulto.

It is requested that the State of Account may be returned to
this Department.