No. 41

I beg to communicate for the information of Her Majesty's
Government that the Island of San Juan is still occupied by
detachments of United States Troops, the force now assembled
there being about four hundred men, with eight 32 pounder Guns,
Several field pieces, and a large quantity of military stores;
besides a number of labourers and artificers who are to be
Employed in erecting barracks for those troops; their occupation
of the island has therefore assumed an unmistakable character of
permanence.

2. On our part we maintain Mr De Courcy on the Island as
resident Magistrate, and Her Majesty's Ship "Satellite" with a
complement re-inforced by the addition of fifty four
Supernumerary Marines, is anchored in the offing, for the
protection of British Subjects; but none of Her Majesty's Troops
have been landed there.

3. Every precaution has been taken on our part to avert the
danger of collision, and conflicts are not expected to occur,
unless the rights of British Subjects should be violated by
attempts on behalf of the United States to levy taxes on their
property, or otherwise to spoil or oppress them.

4. I confess with regret that my views differ essentially from
those expressed by Rear Admiral Baynes, in reference to the
maintenance of Her Majesty's rights to the Island of San Juan.

5. Rear Admiral Baynes is opposed to the landing of troops on
San Juan, as was intended by me, because he believes they would
have been resisted on landing by the Troops of the United
States, while I had no fears of any such result. Our respective
views are fully explained in a correspondence with him on the
subject, which is herewith forwarded.

6. The measures which I deemed it necessary to take in order to
hold San Juan against the encroachments of the United States are
therein set forth, and my opinion, on the subject, remains
unaltered. I feel assured that a bold and resolute stand, as I
proposed in the first instance, would have nipped their project
in the bud, increased the influence and dignity of this
Government, and prevented collisions, which a policy of
concession may precipitate. I think the letter from General
Harney, giving his reasons for occupying San Juan will add force
to that opinion, as it shews that the project was undertaken in
a spirit of levity and with a want of consideration hardly
consistent with a settled and pre-arranged purpose.

7. Had we at once assumed that dignified attitude, Her
Majesty's Government would moreover, have been placed in a much
better position

*

than they now will be for dealing firmly with the question of
the disputed Territory.