No. 7

With reference to that portion of your Despatch No 35 of the
17th August last in which you state that you had chartered a Vessel
belonging to the Hudson's Bay Company as a Guard ship for the protection
of the Settlement, whereby an expenditure of £600 a month would be
incurred payable as you presumed by Her Majesty's Government, I have to
acquaint you that they do not admit that the danger to which the Colony
may be exposed from Privateers or otherwise justifies the proceeding
which you have adopted, and that they cannot therefore sanction or hold
themselves in any way responsible for the outlay incurred on this account
as a charge upon the Imperial Treasury.

The precautions which they deemed it advisable to take for the
protection of the Island were reported to you in my despatch of the
5th August, in answer to yours of the 16th May applying for
instructions on this subject, which I regret you did not wait to receive
before incurring the heavy charges which they are under the necessity of
disallowing.