Peel to Rogers (Permanent Under-Secretary)

With reference to your letter of the 19 Ult, enclosing two Acts of
the Legislature of Vancouver's Island entitled, respectively,

"The Vancouver Island Road and Harbour Loan Act 1862"

and

"The Vancouver Island Temporary Debenture Loan Act 1862".

I am directed by the Lords Commissoners of Her Majesty's Treasury to
acquaint you, for the information of the Duke of Newcastle, that
Their Lordships will not object to the confirmation of the two Acts
in question, but they regret the absence of any information of a
recent date respecting the Financial condition of the Colony, as
without it, they can form no opinion as to the adequacy of the
security provided for payment of the Interest, and for the redemption
of the Loans.

With regard to the negociation of the Loan by the Agents General for
Crown Colonies, and the signature by them, on behalf of the Colonial
Government of Vancouver Island, of the Debenture to be issued in this
Country, My Lords desire that there should be a distinct
understanding that, in their borrowing money for a Government which
possesses the control over its own general revenue without the
supervision of Her Majesty's Government, the Agents General are
acting merely in the name of the Local Government, and that Her
Majesty's Government can come under no responsibility on account of
their transactions in that capacity, or otherwise, in connection with
the Loan.

My Lords are of opinion that the Agents General should be called upon
for a Report as to the mode in which the Government of Vancouver
Island should contribute towards the expenses of the Agency for
services to be rendered in respect to the proposed Loan.