Sargeaunt to Elliot (Assistant Under-Secretary)

Adverting to your letters of the 16th November and the 14th
 December last, conveying Mr Secretary Cardwell's authority for the
investment of the contributions to the British Columbia Sinking
funds on the Loans of that Colony in the securities either of
Ceylon, New South Wales, Mauritius, Victoria, or the Cape of Good
Hope as the Trustees may from time to time determine, due regard
being had to the prospects of the several Colonies mentioned, I
think it right to bring under Mr Cardwell's consideration whether
 the advantages thus granted to British Columbia, should not under
 the same regulations be extended to Vancouver's Island.

The Trustees to the Vancouver Island Sinking fund are Mr Gairdner and myself, appointed by your letter of the 1st July 1863 pursuant to Clause XIII of the Vancouver Island "Road and Harbour Loan Act,
1862," which vests also in the Secretary of State for the Colonies
 the power to select the nature of the securities, whether Imperial
or Colonial.

Below for the convenience of reference I annex an Extract from
Clause XIII.