No. 5

1. Your Grace's Despatch No 10 of the 15th October last,
*

was received here on the 24th Inst, and I shall carefully
regulate the acts of this Government, in its relations referred to,
according to the principles laid down in Your Grace's instructions.

2. In my Despatch No 10 of the 24th November last, I reverted
to the subject of the Sovereignty of the Islands in the Canal De Arro,
and stated the grounds which had induced me to assume that the
Islands of San Juan, Lopez, and Orcas, the only territory in debate, did of
right belong to Her Majesty the Queen, and come within the Jurisdiction
of this Government. Further reflection on the subject has served to
confirm the opinions I then entertained of the correctness of that
interpretation of the Treaty, which considers "Vancouver's Strait," as
the true channel, through which the boundary line, was intended to be
carried; that being the only navigable ship channel, which runs
"southerly" as the Treaty declares, from the point in the "Gulf of
Georgia," where the west line ceases, into the Straits of Juan de Fuca.

3. I would further take the liberty of remarking that the Canal De
Arro, is not properly a part of the "Gulf of Georgia," nor of the
Channel leading from it, into the Straits of Juan De Fuca. It is
considered here to be a separate, and distinct channel, running
paral[l]el to the "Gulf of Georgia" from which it is divided by the
numerous Islands of the Archipelago De Arro. There are several
passages
among those Islands, leading from the Gulf of Georgia, into the Canal De
Arro, and the Officers of the Hudson's Bay Company, have ascertained
that one of those passages, connecting the two channels is navigable for
ships. That passage will be found traced in red in the copy from
Vancouver's Chart herewith transmitted, and it will also be observed
from the same Chart, that it runs nearly due east and west, and
therefore, as well as from the fact of its leading out of the Gulf of
Georgia, into another Channel, namely the Canal De Arro, does not appear
to be the boundary channel, meant by the convention; which by the term
"said channel", I conceive requires that the line should follow the
Gulf of Georgia, and no other channel; as it declares that from the
"middle of the Channel," which separates the continent from Vancouver's
Island, the line shall be drawn thence, "southerly", through the
middle of the said channel", and of the Fuca Straits to the
Pacific ocean.

4. The same chart will prove that the channel intended by the
negotiators of the Treaty, can be no other than the Inland sea, which
Vancouver named the "Gulf of Georgia," for admitting inaccuracies in the
present charts, and admitting that the Coast line of Vancouver's Island
is several miles west of the position, it is therein represented, still
the middle point between the Island, and the Continent, will be found
somewhere in the "Gulf of Georgia."

That fact being admitted, and the Gulf of Georgia, being the
channel meant, the rest appears plain, for the Treaty declares, that the
boundary line is to be traced, "southerly", through the middle of the
said channel; that is, (Gulf of Georgia), and of Fuca Straits,
to the Pacific Ocean.

5. The Gulf of Georgia certainly extends as far south as
McLaughlins [McLoughlins] Island, from which point the boundary line
will naturally take the direction of "Vancouver Strait," and from thence
as stated in the Treaty, to the Ocean.

6. This argument appears conclusive, as to the true meaning and
intent of the Treaty, which cannot be interpreted in any other sense,
without a manifest violation of the letter and spirit of that
instrument, which I believe was intended to allow to each of the
contracting parties free ingress and egress to and from the Gulf of
Georgia, by the usual and frequented ship channel, "Vancouver Strait."

7. I will conclude my remarks on that subject, which I trust your
Grace may not regard as over minute, by referring you to a corrected
Chart of that part of the Coast prepared by Mr Pemberton the Colonial
Surveyor, by which you will observe that the land which bounds the Gulf
of Georgia to the westward, and which at the Date of the Treaty, was
supposed to form part of Vancouver's Island, is shewn to be a Groupe of
Islands, separated from it by a passage which may be regarded, as a
continuation of the Canal De Arro.

8. The discovery of that passage unknown to the negotiators of the
Oregon Treaty, and who consequently must have regarded that Groupe of
Islands, as the East coast of Vancouver's Island, and fixed the
termination of the west line of boundary in the Gulf of Georgia, mid-way
between the Islands and the Continent, will not materially affect the
question at issue, as the middle point between the Continent, and the
true coast of Vancouver's Island, will still be in the "Gulf of Georgia," and it follows as a consequence, that the Gulf of Georgia, is
the channel intended by the Treaty, and from that point, it is no less
clear from the words of the Treaty, that the line must follow the
said Channel, ("Gulf of Georgia"), southerly as far as it extends,
that is to McLoughlin's Island, where the "Gulf of Georgia" terminates
in Vancouver Strait.

9. Your Grace expresses a wish to be informed how the assertion of
the Sovereignty of Great Britain, over the Islands 
in the Arro Archipelago, has been met by the Americans, and also what steps they
have taken to support the claims they have set up on the part of the
United States.

I have to inform your Grace in reply to that enquiry; that the
Executive authorities in Oregon have not by any overt act contested the
sovereignty of Great Britain, over those Islands, neither do I suppose
they will attempt any open act of aggression. The Collector of Customs,
whose department is entirely independent of the Local Executive of
Oregon, is the party who will be employed to act on behalf of the United
States.

A claim was vaguely made by the Oregon Assembly, when dividing that
Territory into Districts, to the Islands in the Canal De Arro. The
person who now holds the office of Collector in Washington Territory,
pretends on the strength of that act that the Arro Archipelago, comes
within the limits of his Revenue District, and I am informed, has been
threatening to make a seizure of the British
Property, on the Island of San Juan, I have not however received any official notification from him
to that effect; but I believe from the character of my informants, that
he has expressed such an intention.

I have therefore taken such measures as appeared proper to protect
the property of Her Majesty's subjects from aggression.

Having no military force at my disposal, which moreover I should
hesitate to use on such an occasion, I propose to effect that object, by
the operation of the civil law, and have therefore appointed Mr
Charles Griffen [Griffin], of the Hudson's Bay Company's service, a
Justice of the Peace, for the District of San Juan, and charged him, to
apprehend and commit for trial, any person who may disturb the Queen's
Peace, within his Jurisdiction.

Should the United States Collector appear there for any unlawful
purpose, he will be treated as a common offender, unless he brings a
large force, in which case Mr Griffen will apply for needful support
to 
inforce the Law.

Your Grace will perceive that very serious consequences, may result
from such contests, which I should deeply regret, and will do every
thing in my power, consistently with the maintenance of national rights,
to avoid.

10. Your Grace further wishes to know for what length of time the
Americans have been fishing on the coasts of Vancouver's Island, and in
what situations, and whether the Commanders of the vessels of war, on
the coast have succeeded in arresting their encroachments.

11. The first intelligence concerning the visits of American
vessels to Vancouver's Island, was received through the Natives, of
"Barclay's sound," who mentioned that an American vessel had been
trading with them, and fishing on that part of the coast.

This occurred in the summer of 1851, before my appointment, as
Governor.

The following year 1852, we had intelligence through the 
same means, of encroachments, on a more extensive scale, which I reported in
my letter of the 9th December 1852. One of the vessels engaged in
that traffic was wrecked on the north west coast of Vancouver's Island,
in the course of the same year, and the natives took possession of the
wreck and cargo, consisting, as reported of fire arms, manufactured
Goods and Spirits. The crew escaped in the ships boats, and were not
molested by the natives.

12. American vessels are still engaging in the same pursuits, as I
did not feel at liberty to take any active measures of prevention,
without instructions; lest I should in any manner compromit Her
Majesty's Government.

Having now received your Grace's instructions on the subject, I
will call upon the commanders of Her Majesty's vessels of war, when
stationed here, to check those encroachments.

13. I shall also give effect to your Grace's instructions on the
subject of the Hudson's Bay Company's rights of trade, which I believe
extend to every part of the British coast except Vancouvers Island,
where they exercise no exclusive right of trade, and I shall issue a
proclamation to that effect, and to apprize foreigners that they are
precluded from fishing within three miles of the shore.