I have to acknowledge the receipt of your Despatch N 3 of the
15th June containing a Report up to that Date of the state of the
settlement under your care.
I have reason to know that it is a subject of much regret to the
Hudson's Bay Company that the colonization of Vancouver's Island has not
been attended with the success at first anticipated from that enterprize.
The attractions of California have probably contributed with other causes
to draw Emigrants away from Vancouver's Island; but it is to be hoped
that this Emigration will eventually be beneficial to Vancouver's Island
in creating a demand for its productions and consequently making it a
desirable place for settlers. I observe that you have fallen into a
mistake with regard to the Puget Sound Agricultural Company. That
Company though its shares are held by persons more or less connected with
the Hudson's Bay Company, is a distinct and separate association, having
a Capital of its own and possessing Rights which are recognized by the
Treaty of 1846 between Great Britain and the United States.