Confidential

I have had under my consideration your despatch marked confidential
of the 24th of October requesting that the condition on which by my
despatch of the 29th of July, I sanctioned an annual addition of
£1,200 to your Salary might be dispensed with.

I have to inform you that in the present uncertain state of the
finances of British Columbia, H.M's Government consider

that it would be
unadvisable and probably difficult to fix a permanent amount for the
salary of the Governor of that Colony and Vancouver Island, and I regret
therefore that I can only authorize you to appropriate the sum of £1,200
out of the Revenues of British Columbia as an allowance for the year
ending the 31 of December last, leaving the question of the amount of
your salary for the future to be hereafter considered with reference to
the circes of the colony and the cost of living.