No. 12

I have received your Despatch of the 9th December last in which
you submit three questions of considerable importance, the first
relative to the Sovereignty of certain Islands in the Arro Archipelago,
the second respecting the encroachment of the Americans on the British
fishing grounds on the West Coast of Van Couver's Island, and the third
relative to the Trade carried on by the Americans with the Indians of
that Island.

1st As you have promised a further report upon the first of
these topics I must postpone the consideration of it until that report
arrives; but I must request you to send me the information of which you
are in possession with as little delay as possible. In the meanwhile I
wish to observe to you that a disputed question of Sovereignty over
distant Countries is a matter of such delicacy and importance that it can
only be dealt with on the most accurate representation of
facts. Whatever information therefore you are able to supply me with, I
must impress upon you the necessity of satisfying yourself that it is
derived from substantial and trustworthy sources. I perceive you state
that it was your intention to assert the Sovereignty of Great Britain to
all the Islands in the Canal de Arro situated to the Eastward of
Strawberry Bay. I shall wish to be informed how this assertion of the
Sovereignty of this Country over these Islands has been met by the
Americans, and also what steps they have taken to support the claim they
have set up on the part of the United States.

2ndly As regards the alleged encroachments of the Americans on
the fishing grounds it is unquestionable that no foreigners are legally
entitled to fish upon or within three Miles of the Coasts of Van
Couver's Island, and that they may be interrupted and compelled to depart
if they persist in doing so. But upon this point also I am obliged to
ask you for more definite information. I should wish to know for what
length of time the Americans have been fishing on the Coasts in Question,
and in what situations, and whether, as you state that you have called
upon the Commanders of the Vessels of War lately on the Coast to arrest
their encroachments, those Officers have succeeded in doing so.

3rdly With regard to the third subject the traffic of the
Americans with Indians you are of course aware that the Hudson's Bay
Company are legally entitled to this trade to the exclusion of all other
persons whether British or Foreign. You are therefore clearly at
liberty to take such steps as may have the effect of punishing persons
who infringe their rights. But I am of opinion that it would be prudent
previously to issue a proclamation warning all persons against the
consequences of such an infringement of the Hudson's Bay Company's
rights, and also apprizing foreigners that they are precluded from
fishing within three Miles of the Shore.