No. 4

I have to acknowledge your Despatch,
No 23, of the 19th May last,
inclosing a Proclamation which you had issued on the subject of boats
and vessels entering Fraser's River for trade, and reporting farther on
the state of the Couteau Gold diggings.

The accounts which have reached Her Majesty's Government from other
quarters as well as your own, afford abundant evidence of the critical
nature of the circumstances in which you are placed. They have much
satisfaction in reflecting that the maintenance of public order and of
the rights of the Crown in that quarter is placed in the hands of an
officer so vigilant, and so well acquainted with the Country and the
people, as yourself, and you may rely on their support in the
performance of this arduous duty, under the very peculiar difficulties
of your position.

They are now engaged in conducting through Parliament a measure
for the purpose of giving the sanction of law to the steps which the
Crown will be advised to take for the establishment of regular
government and protection both of the immigrants and the natives as far
as practicable and they are also devising the means for affording you
the support of a Military force, as soon as this can be effected.

In the meantime I must lay down a few rules for your guidance in
the administration of the authority which has thus devolved on you.

In strict law your Commission extends to Vancouver's Island only;
but you are authorized, under the necessity of the case, to take such
measures not inconsistent with the general rights of British subjects
and others within Her Majesty's Dominions as that necessity may justify.

I approve, therefore, of your having detached an Officer of the
Customs from Vancouver's Island (if the intention announced in your
Despatch was carried into execution) for the purpose of preventing the
landing in Fraser's River, of articles prohibited under the Customs Laws
to which you refer. Subject to this restriction Her Majesty's
Government, wish no obstacle to be interposed to the disembarkation of
passengers and goods at the mouth of Fraser's River by foreign vessels.

But it is necessary to maintain the principle, that the navigation
of Fraser's River itself, above the mouth, is open in law to British
Vessels only. American or other foreign vessels, therefore, if admitted
to navigate that river (to which it is the desire of Her Majesty's
Government that no unnecessary obstacle should be interposed) should be
required to take a license from yourself or such officer as you may
delegate for the purpose.

But I must distinctly warn you against using the powers hereby
entrusted to you, in maintenance of the interests of the Hudson's Bay
Company in the Territory.

That Company is entitled under its existing license to the
exclusive trade with the Indians, and possesses no other right or
privilege whatever.

It is, therefore, contrary to Law, and equally contrary to the
distinct instructions which I have to convey to you, to exclude any
Class of persons from the territory, or to prevent any importation of
Goods into it, on the grounds of apprehended interference with this
monopoly; still more to make any Governmental regulations subservient to
the revenues or interests of the Company.

I am compelled therefore to disapprove, and to disallow if still in
force, the proclamation of which your Despatch transmitted a Copy.

To fit out boats and Vessels to enter Fraser's River for trade is
no "infringement of the rights of the Hudson's Bay Company" as that
proclamation terms it. Such infringement only commences when any
trading with the Indians is attempted: and no steps can rightfully be
taken to put a stop to legal acts of this description on the ground that
they may be intended for ulterior purposes, infringing on private rights.
For the same reason, to require a "license from the Hudson's Bay Company"
of persons landing in the Territory is altogether unjustifiable.

I am obliged for the same reason to disapprove of the terms which
you have proposed to the Pacific Mail Company. They ought not to be put
under terms to "carry the Company's Goods, and no other." Nor ought
they to be prevented from carrying persons not furnished with a Gold
Miner's license; such License can properly be required of intending
diggers on the ground, but not of persons merely seeking to land on the
Territory. Still less has the Hudson's Bay Company, any right whatever
to exact from Passengers any fee or head money by way, as you term it,
of "compensation."

Should therefore the Pacific Mail Company have assented to these
terms, I must nevertheless require their being altered according to the
tenor of these instructions, for the future.

I am fully aware that before this despatch can reach you the state
of things may have materially altered, and that some of these directions
may have become inapplicable. Even in that case, however, they will
serve as an indication of the general policy which is the intention of
Her Majesty's Government to pursue and their wish that you should
execute, in this emergency.

I hope by next Mail to be able to add to these directions.