No. 6

I have had the honor to receive Your Grace's despatch No. 66 of
the 28th September 1867, enclosing a letter from Mr
Watson on the subject of the loss of his Office of Treasurer of
Vancouver Island on the Union of the two Western Colonies. Your
Grace observes that some of Mr
Watson's statements are in contradiction with those furnished in
my despatch No. 58 of the 6th
of April 1867, and desires me to send a further report.

2. The greater part of the negotiations with Mr
Watson were carried on verbally by Mr
Birch, the Colonial Secretary. I now send a precis of all the
documents on the subject which can be found in the Colonial
Secretary's Office. I do not see that Mr
Watson's statements and my own offer any material difference.
He was to have six months leave of Absence on full salary and a
free passage Home for himself and family. I likewise promised
to bring under your notice Mr
Watson's desire for further employment. I did so in my despatch
above referred to. Of Course I could not think of asserting
that Your Grace would bestow another Office upon him. Having
stated all I could in Mr
Watson's favour I considered my promises fulfilled.

3. He has however now returned to the Colony as Inspector of
the Bank of British Columbia and I suppose therefore that the
matter will be allowed by him to drop.