Berens to Newcastle

I have the honor to acknowledge the receipt of Mr Merivale's letter
of the 31st ultimo transmitting a copy of a correspondence which has
passed between your Grace and Governor Douglas on the employment of
British Columbia Officials in the service of the Government of
Vancouver's Island.

The portion of that correspondence which seems most particularly to
interest this Company is the announcement made at the end of Your
Grace's letter to Governor Douglas, that Vancouver's Island like
other British Communities however small "must expect no assistance
from without towards the ordinary and regular expenses of her
Government"—and I shall take care that the attention of the
Company's representative in Vancouver's Island, to whom the whole
correspondence will be forwarded by the next post, shall be called to
that intimation.

I avail myself of this opportunity of referring your Grace once more
to a letter which Mr Fortescue addressed to me on the 12th July
last by Your Grace's directions, and in which after referring to
certain advances made by this Company's representative in the Island
at Governor Douglas's earnest request for the erection of some public
buildings which were pressingly required, you informed me that Her
Majesty's Government would not consider themselves bound by the
conditions of the Grant of Vancouver's Island to take upon themselves
the repayment of any cost thus incurred, after the actual expiration
of the Grant, or in the immediate prospect of its expiration.

That letter I had the honour of answering on the 19th of the same
month, and I at the same time directed that a copy of the
correspondence should be forwarded to Vancouver's Island for the
guidance of Mr Dallas, the Company's representative there. The last
Mail has brought Mr Dallas's acknowledgement of the correspondence,
together with a letter addressed to the Secretary of this Company
giving a detailed account of the circumstances under which he
consented to make those advances.

I now have the honor of transmitting that letter for Your Grace's
information, (together with a Copy of a correspondence on the subject
which has taken place between Mr Dallas and Governor Douglas), and I
venture to hope that the explanations which he gives will satisfy
Your Grace that under the circumstances he could not have acted
otherwise.