Confidential

I have had the honor to receive Your Lordship's Confidential
Despatch of the 24th August, enclosing for my information
Copies of a correspondence with the Foreign Office in regard to
the reported intention of the United States Government to
include San Juan and the adjacent Islands in the Census of the
United States.

2. This matter has already been brought to my notice by Mr
Thornton, as he states in his Despatch to the Secretary of State
for Foreign Affairs, and I now enclose a Copy of the reply which
I then forwarded to Mr Thornton. It was in fact too late for
interference, even if I had authority for the purpose, or, if
interference had appeared desirable. But I was not disposed
to attach much importance to the proceeding. I have however
recently received another Despatch from Mr Thornton, of which I
forward a Copy in which he acquaints me that the United States
Government have relinquished the intention to include San Juan
in the Census.

3. There is I fear very little doubt of the disposition of the
authorities of the United States gradually to transgress the
limits of the understanding agreed upon for the occupation of
San Juan, if they are allowed to do so. I now forward to Your
Lordship a Copy of a Letter from the War Department at
Washington, which has been brought under my notice within the
last few days, addressed to a person interested in property at
San Juan, in which jurisdiction is claimed for the Courts of
Washington Territory over the persons and property of American
residents on the Island. This has come into my hands through a
private channel or I would forward it to Mr Thornton, but I
scarcely feel at liberty to furnish it as the basis of any
formal representation to the United States Government. In
representations which have been made to me it is alleged that
British subjects as well as Americans were interested in the
property to which the Letter refers, and application was made to
me for interference; but I did not regard myself under your
predecessor's instructions as having any authority, or the
Courts of this Colony as at present possessing any jurisdiction.