No. 29

I have the honor to acknowledge the receipt of your Despatch No 2,
of the 13th of August last, in which after noticing certain passages
of my Despatch of the 24th of November 1853, on the subject of the
occupation of the Arro Islands, to which the Authorities of Washington
Territory had then recently set up pretensions of Sovereignty, on the
part of the United States of America, you desire me to furnish a more
detailed report of the circumstances, and date of the British occupation
of the Island of San Juan, and I shall now proceed to obey your
instructions.

In my several reports to Her Majesty's Government of the Numbers
and Dates noted in the Margin, * I stated my intention of asserting the Sovereignty of those Islands; the
grounds which induced me to take that course; the reasons for believing
that the Arro Islands were not within the Territory ceded to the United
States, by the Treaty of 1846, and also the measures taken from time to
time, to defeat the plans of the officers of that Government, for
depriving us of that possession. I perceive, however, that I have
omitted to give information on certain points, in reference to the
Settlement formed there under the superintendence of Mr Charles Griffin, in the month of November 1853, an omission which I regret, and
will now supply.

When apprizing Her Majesty's Government in my despatch of the
24th of November 1853 that I had succeeded in defeating every attempt
made to pre-occupy the Arro Islands by means of American Squatters, and
that those Islands still remained a de-facto dependency of Vancouver's
Island, unoccupied by any settlement of Whites except a fishing station
established some years previously by the Hudson's Bay Company, on the
Island of San Juan, my intention was simply to give an idea of the
actual condition, in respect to the settlements of whites, of those
Islands. I did not mean to convey the impression to Her Majesty's
Government, that no further steps would be taken to assert Her Majestys
rights to the Territory in question by a more extended occupation.

I confess that, on the contrary, it was my firm resolution to
assert the rights of the British Crown, by every means within my power,
to a Territory which from the first establishment of this Colony, had
been treated, as a dependency, coming within the jurisdiction of the
Government of Vancouvers Island, and of which we had held unquestioned
possession, until an adverse claim, unsupported so far as I can
discover, by any regular authority, was set up to it, by some American
citizens towards the close of the year 1852, as announced to Her
Majesty's Government in my Despatch of the 9th December of that year.

It was in that case clearly my duty as a Servant of the Crown, to
maintain in their integrity the established metes and boundaries of the
Colony.

I accordingly proceeded to warn the parties, who had commenced
building huts on Lopez Island, that they were committing a trespass, the
site of their settlement being on British Territory. I moreover
informed them that the spot which they proposed to occupy would be
reserved for the use of Her Majesty's Government, and that if they
persisted in the attempt they would in all probability lose their labor
and improvements. I also objected to their removing a quantity of
Timber, which they had cut for exportation. Whereupon artfully changing
their tactics the leader of the party declared that he was a British
born Subject, and intended to settle and purchase land in the Colony.
To that course there could be no objection, and I thereupon at his
application, issued a Licence in the Queen's name, permitting him to cut
Timber on Lopez Island, and he gave security for payment of the regular
duty levied on Timber cut from the public lands.

That proceeding, asserting British Rights, put an end to their plan
of settlement, and the whole party soon after, abandoned the place.

Other attempts were in like manner made to establish a claim on the
Arro Islands, and as there was every probability of their being
frequently repeated, by our unscrupulous neighbours, it appeared to me
that the best plan of defeating such attempts would be the commencement
of British Settlements on those Islands. The Governor and Committee of
the Hudson's Bay Company having been consulted on the subject of a more
extended occupation of the Arro Islands, as a defensive measure against
American encroachments, gave me authority solely with that view, to
employ their Agents and Servants in forming a British Settlement on the
Island of "San Juan." That project was carried into effect in the month
of November 1853, at their sole expense, and Mr Charles Griffin one
of their servants, was entrusted with its management.

As a means of further strengthening our possession, by encouraging
the settlement of British subjects on the Arro Islands, I also received
the instructions of the Governor and Committee of the Hudson's Bay
Company, to make free grants of land, to the extent in all of 500 acres,
to any British Subjects, who would occupy and improve the land.

This last measure entirely failed of success; no persons having up
to this time, accepted the terms of settlement, proposed, altogether, I
think for want of the requisite means and capital. The other measure
has on the contrary been attended with complete success; the settlement
formed on the Island of San Juan, by the Hudsons Bay Company under Mr
Griffin's management being in a most flourishing state. Upwards of 2300
head of horses, cattle and Sheep, are now ranging over that Island; a
large extent of land is under cultivation, and roads have been cut
through the forest, nearly from end to end of the Island.

Thus, has been accomplished at a great expense, an enterprise of which no private persons would willingly incur the risk. I trust however, that the patriotic exertions of the Hudson's Bay Company are appreciated, and will in due time be rewarded.

I did assure Mr Griffin when he was sent to settle the Island of San Juan; that he would be protected, and I have done every thing that
lay in my power to redeem that promise.

The style of Mr Griffin's report, on the outrage committed by
certain American citizens, transmitted with my letter of the 18th of
May last, may have led Her Majesty's Government into the conclusion,
that the San Juan Settlement is a private possession of his own; but
such is not the fact, as the farmsteads, implements, live stock, and all
other effects there, are the exclusive property of the Hudson's Bay
Company, and are placed under Mr Griffin's management.

I beg further to observe in respect to the date of the British
occupation of the Island of San Juan, that it was in the first place
taken possession of, by the Agents of the Hudsons Bay Company in the
month of July 1845, and a notice to that effect, engraven on a wooden
tablet, was erected on an eminence near the South east point of the
Island, a record which is still in existence, but there was no real
occupation of the Island, until the year 1850 when a fishing Station was
established by the Hudson's Bay Company, and lastly their pastoral and
agricultural establishment was commenced by Mr Griffin in November
1853.

Thus the Island of San Juan was taken possession of in the year
1845, and has been occupied by the Agents and Servants of the Hudson's
Bay Company since the year 1850.

Trusting that I have herein given the information you desired me to
communicate I will conclude for the present my remarks on the subject.