No. 104

I have the honor to acknowledge the receipt of your despatch No. 75
of the 30th of November enclosing an Estimate of the Expenditure
necessary for the maintenance of the Detachment of Royal Engineers
serving in the Colony during the year 1862-63, and expressing your hope
that the whole of this Expenditure amounting to £17,900 may be provided
for from Imperial funds.

It is not possible that I should comply with your request: nor can
I sanction a renewed application to Parliament for so large a sum as
that which has hitherto been voted on this account. The entire cost
both Imperial and Colonial of the Royal Engineers amounts according to
your Estimate to £22,000 and of this sum Her Majesty's Government have
decided that one moiety of £11000 must be defrayed from the Colonial
Revenue of the remaining moiety to be paid from Imperial Funds £3,800 are
already borne on the Army Estimates for the Regimental pay of the
Engineers, and there will therefore remain a sum of £7,200 to be
provided by a Parliamentary grant. This sum in addition to the salary
of the Governor will constitute the estimate to be submitted to
Parliament for British Columbia for the year 18621863; and you will limit
accordingly the Bills to be drawn by you on the Imperial Treasury.

With respect however to the Salary of the Governor it is not a
charge which ought longer to continue to be borne by Imperial funds, and
I have to instruct you to take measures for making provision for that
purpose from the Colonial Revenues, after the close of the ensuing
financial year.

I understand that there is reason at the Financial Departments of
the government to believe that notwithstanding the instructions which
have been conveyed to you, you have continued to draw upon the Imperial
Government not merely for the Colonial pay of the Engineers, but also
for the miscellaneous expenditure amounting to about £6000 per annum.
It is necessary that I should point out to you the great irregularity of
such a course, and it is my duty to inform you that if you draw Bills
upon the Treasury in disregard of the instructions which you receive
from this Department, you must be prepared to find yourself held
personally responsible for the amount.