Shepherd to Labouchere

I have the honour to acknowledge the receipt of Mr Ball's letter
of the 22nd Instant, enclosing, by your directions, copies of
Correspondence between the Colonial Office and the Governor of
Vancouver's Island on the subject of certain proceedings in the Island of San Juan in the Canal de Arro: Stating that Mr Douglas appears to
have given somewhat inconsistent information with reference to the
Settlement of that Island, and requesting the Hudson's Bay Company to
furnish Copies of such Correspondence as may have passed between
themselves and Governor Douglas upon the subject.

In accordance with this request I have the honor to forward
Extracts of various letters addressed to Governor Douglas, with his
replies thereto and at the same time beg to lay before you the
circumstances connected with the occupation of the Island of San Juan by
the servants of the Hudson's Bay Company.

In August 1853 the Queen's Advocate communicated, by authority of
the Foreign Office, with Mr Barclay, the then Secretary of the
Company, on the subject of the American encroachments at the Islands in
the Canal de Arro, and in consequence of what passed at that time it was
determined that instructions should be sent to Governor Douglas to
secure possession of the Islands of San "Juan" and "Lopez."

The proceedings of Governor Douglas in this matter were from time
to time reported to the Secretary of State for Foreign Affairs, as will
appear by the accompanying copies of letters; and on this point, I beg
leave to request your particular attention to the letter received by
the Governor and Committee from Lord Clarendon under date the 21st
May 1855 and to the communication made to Governor Douglas by Sir George Grey, alluded to in the letter from the former addressed to the Governor
and Committee, dated 20th April 1855.
*

The Directors of the Hudson's Bay Company are convinced that after
a reference to the Chart of the Straits of De Fuca, and a perusal of the
whole of the correspondence that has taken place, you will be of opinion
that the Hudson's Bay Company have been actuated solely by a desire to
cooperate with Her Majesty's Government in retaining for the British
Crown a portion of territory secured to it by Treaty; and I may mention
to you that these Islands are of little advantage to the
Fur Trade business of the Company,
**
though it is obvious that a Settlement of lawless American citizens so
near to Vancouver's Island would be a great detriment to the peace and
prosperity of the Colony.
***

With reference to Mr Griffin's report to Governor Douglas on the
subject of the outrage committed by the authorities of the United
States, I beg to request your attention to my letter of the 24th July
1855 to Lord Clarendon, and to an extract o f the Committee's letter to
Governor Douglas, dated 30th July 1855; by the former you will
perceive that the Directors of the Hudson's Bay Company lost no time in
informing Her Majesty's Government that the property seized by the
American authorities belonged to the Company, and by the latter that
they disapproved of, and censured Mr Griffin for the ambiguous terms
of his Report.

The Directors have no doubt that both Governor Douglas and Mr Griffin were of opinion that the claims of an independent British
subject would be more likely to be respected by the authorities of the
United States, than those of the servants of the Hudson's Bay Company;
and this may be considered some extenuation of their proceedings under
very trying circumstances.

In reference to the last paragraph of Mr Ball's letter, I beg to
assure you that the Directors of the Hudson's Bay Company have at all
times been most anxious to communicate with Her Majesty's Government
without reserve upon all matters forming the subject of correspondence
between them.

They are well aware that in the peculiar position in which the
Hudson's Bay Company stand with regard to the Colony of Vancouver's
Island, it is essential to the proper conduct of the affairs of that
Colony that entire confidence should exist between Her Majesty's
Government and the Company, and they venture to think that in this
respect you will find the accompanying correspondence with the Secretary
of State for Foreign Affairs completely satisfactory.