No. 62

Your despatch No. 7 of the 1st of June was opened in
my absence by the Colonial Secretary and he at once made the
communication, copy of which I enclose, to the California State
Telegraph informing the Company that the exclusive privileges
conferred on them by the 5th Clause of the Ordinance No. 9
of 1864, could not be allowed by Her Majesty's Government. I
enclose a copy of the reply.

2. I would however mention that Mr James Gamble, the
General Superintendent of the Company, has been on a visit to
me in New Westminster and that I have settled matters satisfactorily
with him. He is convinced that the disallowance of the special
and exclusive privileges was only consistent with the general
policy of Her Majesty's Government in these matters and will
proceed with his undertaking. As compensation however for his
disappointment I am going to give him considerable assistance
in laying the line of wire between New Westminster and the frontier.

3. It is not impossible that in two months I shall be able
to communicate to you by telegraph, at least as far as Newfoundland,
and under these circumstances I would beg for instructions as to
the cipher or otherwise. Mr Gamble has been good enough to
promise to have a branch wire carried into my office at the
Camp, a mile from New Westminster.

4. I will have Ordinance No. 9 amended at the next meeting
of the Legislative Council.