No. 2

I have received Sir James Douglas's despatch No. 3 of the 12th of
February enclosing a Resolution of the House of Assembly of Vancouver
Island in which the House declines to pass the Civil List Act proposed
in the Duke of Newcastle's despatch marked "Separate" of the 15th June
last.

I regret that the House of Assembly did not feel able to concur in
the proposals submitted to it on this subject.

I am desirous however to prevent as far as possible the
disappointment and inconvenience to individuals which this decision
might occasion.

It appears from the Resolution of the Assembly that the Crown Land
Fund for the year 1863 amounted to £4500 but that a considerable portion
of this sum consisted of the proceeds of sales effected in former years.
There may be sources of Revenue, such as fines and forfeitures, fees of
Office, the proceeds of which the Crown could justly appropriate, but in
the absence of any precise information on this head I can only authorize
you to issue warrants for the payment of the salaries of the Governor
and the Colonial Secretary, at the respective rates of £3000 and £600 per
annum assigned to them by my Predecessor, out of any funds which may be
under the direct control and at the disposal of the Crown.

It will of course rest with the Legislature to make provision for
the remuneration of the other Officers employed under the Government in
any way and from any source which may seem most appropriate to them.

Besides the Civil List, Sir James Douglas's despatch raises a still
larger and more important question, namely the union of both Colonies
under one Governor, though with some distinct administrative
departments.

On this subject I am desirous of having the benefit of your views
as soon as you shall have acquired on the spot sufficient experience and
knowledge to enable you to form your opinion, and to supply reliable
information for the assistance and guidance of Her Majesty's Government
in considering the question. I shall in like manner ask
Governor Seymour, to whom I shall communicate a copy of this despatch, to
furnish his views on the same matter, and I need scarcely say that it
will not only be unobjectionable but highly desirable, that you and he
should consult freely on the subject, although it will be the most
convenient course that ultimately each should report to me independently
the conclusions which he may form on the subject.