Peel to Rogers (Permanent Under-Secretary)

In reply to Mr Elliot's letter of the 21st July last, enclosing two Despatches from Governor Douglas praying for relief with respect to the claims of Her Majesty's Government against the
Colony of British Columbia, I am directed by the Lords Commissioners
of Her Majesty's Treasury to acquaint you, for the information of
the Duke of Newcastle, that having so fully stated Their views with
regard to the Financial Arrangements which might properly be made
for the Colony of British Columbia, during the present and the next
year, in Their letter of June last, Their Lordships entertain strong
objections to sanction any departure from those arrangements
unless under circumstances of the most pressing emergency.

My Lords do not find sufficient reason for such departure in
the Governor's Despatches of May last.

They trust that the apprehensions expressed by the Governor,
with regard to the condition of a portion of the Colonists, may not
be realized, and later accounts from the Colony seem rather to
justify that hope.

My Lords have also to observe that the instructions sent by
the Duke of Newcastle to the Governor will probably have led him
to postpone some of the Works comprised in the Estimates for
the present year such as the Government House at New Westminster,
thereby leaving a larger proportion of the Revenue available for
the objects of more pressing importance, and that it may be hoped
that the receipts of Revenue may prove larger than has been estimated.

If, however, such a contingency as that apprehended by the
Duke of Newcastle should arise, and the Governor finds himself
under the necessity of sending home Drafts beyond the authorized
amount, My Lords will communicate further with the Secretary of
State before declining to honour them.

Their Lordships entirely concur with His Grace in the
observation he has made regarding the errors of Account into
which the Governor has fallen—and They trust he may be
furnished with the full information, in the possession of
the Colonial Office, with regard to the sums paid in this
Country, and the actual Financial position of the Colony.