Private

1. I have the honor to acknowledge the receipt of your despatches
Douglas, Jamesterms of appointment as governor
marked "Confidential" of the 16th and 21st of July
last,

and I can hardly find words to express how grateful I am for your kind
notice of my public services, and I would also thank you for the cautions
given in respect to my public acts while connected in business with the
Hudson's Bay Company.

2. I observe the intention of Her Majesty's Government, to appoint
a Governor for British Columbia, and that it was their desire to appoint
me at once to that office in the usual terms of a Governor's appointment,
namely for six years at least, and that this Government was to be held
for the present in conjunction with a separate Commission as Governor of
Vancouver's Island. That offer being made subject to one condition, that
I should give up on receiving the appointment thus offered, all
connection with the Hudson's Bay Company, either as its servant or a
share holder, or in any other capacity, as well as relinquishing directly
or indirectly all connection with the Puget's Sound Company. I observe
also that you made that proposal with the acquiesence of the Governor of
the Hudson's Bay Company, who had seen your despatch of the 16th of
July.

3. On those conditions, and with the consent of the Hudson's Bay
Company, I place my humble services unhesitatingly at the disposal of Her
Majesty's Government, and I will take early measures for withdrawing from
the Company's service, and disposing of my Puget's Sound Stock, trusting
Douglas, Jamessalary of
that the allowances as to salary from Her Majesty's Government will be
adequate to my support, in a manner worthy of the position I am thus
called upon to fill. The sum mentioned in your
letter

for British Columbia, admitting that a separate and larger allowance was
made for Vancouver's Island, is manifestly insufficient for that purpose,
in this very expensive country; where food, clothing, servants wages, the
price of labor, and in short of every necessary of life, so far exceeds
the standard of those values in England.

4. The sum of £5000 per annum including the salaries for both
Governments, would be no more than sufficient to cover the actual
expenditure of that position, a suggestion made merely for your
information; as I feel assured you wish me to maintain the dignity of the
office; and my own fortunes impaired by the almost unrequited tenure of
office in Vancouver's Island, cannot afford the outlay, otherwise I
should be independent in point of means, and in a measure indifferent
about the emoluments of office; which I only wish to be equal to the
respectable representation of Her Majesty's Government in this country.

5. I take the liberty of making those suggestions with the more
confidence, as I feel assured that the resources of the country can
afford the expense of maintaining a respectable government, and I shall
do every thing in my power to develop those resources, and to bring the
Colony rapidly into a self supporting condition.

I shall take immediate steps to inform the Hudson's Bay
Company of my present decision.

Awaiting your further instructions.