Hamilton to Merivale (Permanent Under-Secretary)

In reply to Mr Elliot's Letter of the 29th Ultimo, Enclosing Copies
of a Correspondence which has passed relative to the erection of
Lighthouses in Fucas Straits, and the Approaches to Esquimalt
Harbour, Vancouver's Island; I am directed by the Lords Commissioners
of Her Majesty's Treasury to acquaint you, for the information of Sir
E Bulwer Lytton, that my Lords approve of measures being taken for
sending out immediately from this country, the apparatus required for
the two Lighthouses proposed to be erected.

They also approve of the sum of seven thousand pounds (£7000) being
inserted in the Estimate for British Columbia, with the understanding
that one half of that sum will be hereafter repaid from Colonial
Funds, and that the Contribution from Imperial Funds towards the
erection of the Lighthouses will be limited to three thousand, five
hundred pounds (£3,500).

Their Lordships are of opinion that it would be inexpedient to place
any portion of this Charge upon the General Estimate for Lighthouses
abroad, and that it would be desirable to include it for the present,
with the other Items which are to be repaid wholly or in part, from
the Revenues of British Columbia, and Vancouver's Island.

Adverting to the excessive expenditure already incurred in the
attempt to erect a Lighthouse on the Basses Rocks

off the coast of
Ceylon—attributable in a great degree to the want of a proper and
clear understanding as to the Parties upon whom devolved the
responsibility of the Work—My Lords request that Sir EB Lytton will
make Governor Douglas fully aware that altho the Board of Trade will
readily afford any advice or information, and will send out from this
country the Lighting apparatus, they decline undertaking any
responsibility as to the selection of the site or the construction of
the Towers; and My Lords, in sanctioning the Estimate of £7,000,
trust that Sir EB Lytton will instruct Governor Douglas to consider
himself responsible for the adoption of proper means for selecting
the site, and having the construction of the Work properly superintended.