No. 7

1. I have the honor to acknowledge the receipt of Mr
Merivale's letter of the 24th December
last,

informing me that the letter from the War Department, respecting the
Boundary commissionaccommodation for
despatch of the party for exploring the line on the 49th parallel of
latitude, between the British and American
possessions

was written from unavoidable circumstances, too late for communication to
the Colonial Office, in the ordinary manner, and that it should be
regarded as addressed to me, with your concurrence.

2. Your instructions in respect to the objects contemplated
in that letter shall be implicitly attended to, and I will take
measures at an early day, to provide accommodations for the party
on Vancouver's Island, as suggested by Lord
Panmure,
and otherwise to advise the Chief Commissioner regarding the best method
of carrying out the instructions of Her Majesty's Government, so far
as respects the means of transport for his provisions and stores,
and the obtaining of local labor.

3. There being a great scarcity of laborers in this country
Labourscarcity of
LabourIndiansneed for
at present, and wages consequently running very high; Mechanics
refusing employment at any thing under 12/6, and common laborers 5/-
a day, besides their food; it being moreover not improbable that
the demand for so many additional hands, as will be required in
exploring the Boundary Line may have the effect of raising the
present rate of labor; I would therefore suggest for your consideration
Boundary commissionincrease in numbers requested
whether it would not be advisable in those circumstances to send
out a greater number of men from England, than the 30 non-Commissioned
Officers and men, mentioned in Mr Hawes' letter.

4. By pursuing that course there would not be so great a drain
of labor from this Colony; wages would be kept within reasonable
bounds, and what is of far more importance to the public service,
the Chief Commissioner would be in a measure independent of local
labor, and enabled to carry out the views of Her Majesty's Government
in respect to the Boundary Line with such aid, chiefly native Indians,
as can at all times be procured in this Colony.

5. I would not advise the exclusive employment of Indian labor
Indianlabourneed for
in tracing the boundary line; but I think with a body of 60 white
men as a nucleus, and for the purpose of maintaining a proper
supervision and control, we could under any probable circumstances,
by the employment of Indian labourers, even in the event of the not
unlikely contingency of the whole floating white population of
Vancouver's Island, leaving the Colony for the gold mines, make up
a party of the requisite force to complete the boundary Survey.