No. 35

I herewith transmit for the information of Her Majesty's
Government, Minutes of the proceedings in the Council of this Colony on
and since the 12th day of July last.

Your Grace will observe that several small sums of money were
appropriated for the payment of certain expenses, incurred about the
Colonial School, for necessary improvements, and that the sum of £50
Sterling was granted for the relief of Mr Barr the Teacher, whose
salary of £60 a year is unsufficient for his support.

Your Grace will also observe that the sum of £1500 in all was voted
by the Council in three sums of £500 each, to be applied to the erection
of a Court House, a Church, and to the construction of roads and
bridges. It is not supposed that those sums are sufficient to
accomplish more than a small part of the objects proposed, but even to
that extent, it was considered important to commence a course of
improvements, that might encourage the settlement of the Country, and
give employment to the disposable labour in the Colony.

2. The defence of the country against the direct or indirect
aggression of Russia, is a subject, forced by circumstances upon our
attention.
*
The Colony can do little if left to its own resources, and we must trust
for protection to Her Majesty's Government.

The people were much alarmed at the idea of a descent by the
Russians, or rather by predatory vessels, acting under the authority of
letters of marque, and it was to guard against that danger, that it was
thought expedient in the absence of Her Majesty's Ships, to charter the
Hudson's Bay Company's Propeller "Otter", as a guard ship, for the
protection of the Colony.

That measure of defence will cost about £600 a month
**
which I presume will be defrayed by Her Majesty's Government, as in the
Grant of Vancouver's Island to the Hudson's Bay Company, it is provided
that the Governor and Company are,

to defray the entire expense of any civil and military establishments
which may be required, for the protection and Government of such
settlements, (except nevertheless during the time of hostilities,
between Great Britain, and any foreign European or American power),

a proviso which directly applies to the present circumstances 
of the Empire, and I shall therefore be happy to have your Grace's instructions
in reference to the payment of that outlay.

3. I have also the honor to transmit herewith copy of "An Act
prohibiting the Gift or Sale of intoxicating liquors to Indians",
***
which passed the Council on the 3rd day of August, and has been
strictly enforced, with a most salutory effect, in respect to the Indian
population among whom, the vice of intemperance was spreading to an
alarming extent, to the great annoyance of the peaceful inhabitants,
whose lives and property are endangered through the excesses of savages,
maddened by the excitement of drink.

I trust that the provisions of this act, and the other matters
referred to in this communication will meet with the approval of Her
Majesty's Government.