No. 48

I have the honor to acknowledge the receipt of your Despatch No 4
of the 21st Septr last, which after advising the safe arrival of
my Despatches No 10 No 5 and No 28, relative to the contested Territory
situated in the Canal de Arro, you are pleased to express the approval
of Her Majestys Government of my proceedings with respect to the
sovereignty of the Islands in the Canal de Arro, and to authorise me to
continue to treat those Islands, as part of the British Dominions.

Those instructions I shall carry into effect to the best of my
ability, and do every thing within the power of my unaided strength, to
prevent the encroachment of foreign nations on Her Majesty's
Territories.

Since my report No 28, of the 17th of May last, respecting our
proceedings relative to the Arro Islands, we have never been free from
alarms, and a series of attempts have been made to establish the claim
of the United States by the authorities of Washington Territory, which
we have on all occasions resisted, and succeeded in defeating.

The most atrocious calumnies were wickedly circulated in the
American Papers, with the view of raising an excitement among the
people. It was, for example, asserted that I, Her Majesty's Executive
officer, had maltreated the United States Collector, and that I had let
loose a horde of northern savages to destroy the defenceless settlements
on the American frontier and many other statements equally false and
improbable. Those statements were contradicted by American citizens
residing in this Colony, who had evidence that I had perilled my own
life in protecting the American settlements, against the attacks of a
powerful native Tribe, who exasperated by their injustice, to the last
degree, were thirsting for revenge. Those groundless reports were
therefore not believed, and entirely failed of their object. A
detachment of United States Troops was however sent from Puget Sound,
with Acting Governor Mason, who landed on the Island of San Juan with
them, and a large train of lawless followers; he was there strongly
urged, as he afterwards informed me, to take possession of the Island,
and of all the British property thereon, and had he been disposed to
listen to those violent counsels, something very serious must have taken
place.

As it was no attempt was then made to molest our people or
property. The United States Revenue Cruizer "Jefferson Davis," was the
next and most formidable adversary we had to contend with.

Her Commander Pease, waited upon me with the view, as he stated of
avoiding future difficulties, which he assured me was his earnest wish;
but he went on to say, that he had received orders to enforce the
Revenue Laws of the United States, in every part of their Territory, and
however reluctantly, he was in duty bound to obey those orders, hinting
also that he wished no British vessels to touch at the Island of San
Juan.

I asked him distinctly, if his orders, from Washington, authorised
him to seize British vessels, calling at the Arro Islands, and by a few
more pointed questions I discovered that he had only the general
instructions issued to the commanders of all Revenue vessels, without
any specific orders relative to the Arro Islands. I drew his attention
to that circumstance, and strongly advised him to take no hasty
measures, which might endanger the peace of the country, and blast his
own prospects in life. The American Journals again took up the question
of the disputed Islands, and tauntingly asked "will Governor Douglas
presume now since the arrival of our revenue cruizer, to land upon the
Arro Islands." British vessels nevertheless went and came as usual, and
without molestation.

An attempt to establish a claim for the United States, on the Arro Islands, was next made by the Sheriff of a neighbouring American county
who on three several occasions has without effect, attempted to levy
certain county taxes, on all British property in the Island of San Juan;
the most recent attempt having been made on the 24th day of December
last.

On all those occasions, the demand was resisted, and the Sheriff
proceeded in the usual manner to give notice of sale for the amount of
the taxes claimed, but as we always managed to have a superior force on
the ground, he completely failed, in the object intended, and we still
remain masters of the field. I now entertain hopes, that those
mischievous contests have come to a close, as I cannot conceal from
myself, nor do I wish to conceal from you the fact, that we may at any
moment be overpowered by a superior force. I hope that such may not be
the case, but outnumbered as we are by the American population, who have
moreover the support of a well appointed body of Federal troops, and
also a Revenue cruizer to protect the coast, and settlements of
Washington Territory, the advantage would be altogether on their side,
should those disputes take a more serious turn.

We have so far succeeded in maintaining British rights, and I am
not a little pleased to be able to report that at this day there is not
a single American citizen on any part of the Arro Islands.

Probably our success in that matter is in some measure due to their
fear of the northern Indians, who have become the terror of the American
settlements.

As an example of the kind of feeling existing among the American
population in regard to those really dangerous savages, I transmit
herewith copy of a note which I lately received from Mr Stevens
Governor of Washington Territory, with my reply, to the same, advising
him how to treat those Indians, a matter, of great importance to us, for
if they acquire a mastery over the Americans, they may also turn their
arms against our settlements.

Having thus briefly reported to you our contests and struggles for
the possession of the Arro Islands, and trusting that those may meet
with the approval of Her Majesty's Government,