No. 40

I have the honor to acknowledge the receipt of your [Vancouver
Island] Despatch of the 1st of July marked
"Confidential"

transmitting copy of a letter addressed to the department over which you
preside, by the Lords Commissioners of the Admiralty informing you of
the steps they proposed to take in consequence of the gold discoveries in
Fraser's River, and you are pleased to add for my particular information
that the officers commanding Her Majesty's ships at Vancouver's Island
would be directed to give me the fullest support, should the civil power
require a force to maintain order among the adventurers resorting to the
gold fields.

You also recommend caution in employing such force on account
of the obvious danger of the desertion of the men.

2. I have on this occasion to assure Her Majesty's Government that
Douglas, Jameswill exercise power judiciously
the considerable powers so placed in my hands will not be misapplied nor
rendered subservient to the promotion of any interests other than those
which with unbounded confidence they have intrusted to my charge.

3. Though so long and intimately connected with the Hudson's Bay
Company, I have uniformly striven during my administration of the
government of Vancouver's Island to dispense equal justice to all its
inhabitants, and to avoid even the suspicion, so allowable in the
circumstances, of undue influence being used on my part in favouring the
objects of the Hudson's Bay Company, I was cautious even about enforcing
the Laws in respect to the rights of that association, which has in fact
exercised no right nor enjoyed any privilege of trade or otherwise, in
this Colony that was not equally shared by every free-holder in
the country.

4. Her Majesty's Government may also rely upon a proper and
discreet use being made of the military and naval force at my disposal,
and that it will not be called into action except in cases of extreme
necessity; and also that all claims and interests will be rendered
subordinate to the great object of peopling and opening up the new
country; and consolidating it as an integral part of the British Empire.

5. I have given full consideration to your suggestion of
inducing by conciliatory advances such of the American immigrants,
as appear to be respectable, and to possess influence with their fellow
countrymen to co-operate with me, in preserving order; and I shall
gladly avail myself of such aid should it be at any time attainable.

6. The feeling of the American population is however not in
Americansprefer British rule
favor of their own countrymen; they object as strenuously as do
the British Subjects here to the appointment of Americans as Magistrates;
or to other offices under the Crown.

The general feeling is in favor of English rule in Fraser's River,
the people having a degree of confidence in the sterling uprightness
and integrity of Englishmen, which they do not entertain for their
own countrymen.

7. I beg further to remark that I feel under great obligations
to Captain Prevost of Her Majesty's ship "Satellite" and to Captain Richards, commanding the "Plumper," for their cordial and unflinching
support in every emergency and you will confer a great favor, by
causing this testimony of their zeal, to be communicated to the
Lords Commissioners of the Admiralty.