No. 28

In my Despatch No 5 of the 27th February last,
I informed your Grace that a claim had been vaguely made to the Islands
in the Canal De Arro, by the Legislative Assembly of Oregon, when
dividing that Territory into Districts, and that Mr Ebey, who now
holds the office of Collector in Puget Sound pretended on the strength
of that Act to consider the Arro Archipelago as part of his Revenue
District, and had, according to report, expressed an intention to seize
upon all the British Property on the Island of San Juan on behalf of the
United 
States; and I also informed your Grace, at the same time that I
had taken measures to protect the property of Her Majesty's Subjects
from aggression, and explained the nature of those precautionary
steps, which have I trust, met with your Grace's approval.

The public excitement caused by the discussion of that question, on
both sides of the line was increased by the arrival of Collector Ebey
himself on the debateable ground, as announced to me on the morning of
the 4th Inst, in a hasty note No 1 from Justice Griffen
[Griffin]. A few hours afterwards I repaired to the Island of San Juan,
with the Steam vessel "Otter" to watch proceedings, but on discovering
that Collector Ebey, was only accompanied by four assistants, I thought
it better to retire from the spot, after landing Mr James Sangster,
Her Majesty's Collector for Vancouver's Island, with instructions to
acquaint Collector Ebey, that the Revenue District of Vancouver's Island, which was placed under his superintendence included Smith's or
Bonilla Island, in the Straits of De Fuca; the Islands of San Juan,
Lopez, and Orcas; the west side of Cypress Island, and 
all the other Islands, in the Archipelago De Arro, west of a line drawn through the
middle of the Gulf of Georgia & Vancouver's Strait.

The subsequent proceedings of Collector Ebey are detailed in the
reports of Justice Griffin No 2, and Collector Sangster No 3, which are
herewith transmitted for your Grace's information. On his departure
from San Juan, Collector Ebey, left a Mr Webber on that Island whom
he appointed Inspector for the United States. Your Grace will observe
by those reports that an attempt made to arrest that person, without
sufficient grounds, had nearly ended in bloodshed. Mr Webber left the Island on the following day, and again made his appearance there on
the 11th Inst, when I sent a further letter of instructions to
Mr Justice Griffin No 4, in reply to a note from him No 5, touching
his conduct to Mr Webber, whom I directed him to consider as a mere
private person, living under the protection of Her Majesty's Government
and amenable to the Laws of the Country, which afford him protection. I
hope your Grace may approve of that course, and send me such 
instructions for my guidance, as you may consider necessary.

This movement on the part of Collector Ebey, is not openly
supported by the Executive Authorities of Washington Territory, though
there is reason to believe that he is secretly countenanced by them, as
he certainly is by the whole American population.

Mr Webber, assured Collector Sangster, and Justice Griffin that Mr Stevens Governor of Washington Territory invited him to settle on the Island of San Juan, promising to support him with all the authority of Government.

In that case Webber would have received a free grant of 640 acres of land from the United States, a principle of liberality which I beg to suggest to your Grace, prodigiously strengthens American influence in this part of the world, and contrasts advantageously with the system of colonization followed on Vancouver's Island, which may suit the condition of other colonies but will, I fear, never succeed in the vicinity of American Settlements, where free grants of land are made to every settler.