Confidential

I have to acknowledge the receipt of your Confidential Despatch of
the 16th January requesting to be informed what are the relative
positions of the Naval Commander in Chief and of the Governor of British
Columbia in regard to the Affairs of San Juan during our Military
occupation of the North End of the Island.

I transmit to you for your information and guidance a Copy of a
letter from the Foreign Office in reply to a reference made to that
Department on the subject and have to observe that it does not seem
advisable to Her Majesty's Government for the reasons therein mentioned
that the Government of British Columbia should exercise any jurisdiction
in San Juan.