Despatch to London.
Minutes (3), Other documents (2).
Douglas writes to Newcastle in response to Newcastle’s previous inquiries into ship regulations and duties in the Colony, which Douglas details at length, and closes with a plea—for the commercial position of this Colony—for trade-reciprocity between the United States and the British North American Provinces.
I have the honor to acknowledge the receipt of a Circular dated
24th June 1853, in which after stating that enquiries have been made
of Her Majesty's Government by Foreign Governments, as to the practice
in the British Colonies with regard to foreign vessels, driven into
their Ports by stress of weather, your Grace requests that I would
inform you whether in the Colony, under my Government, the cargo and the
ship, driven into Port, under such circumstances would be exempted or
not from all dues; and that I should state, what are the regulations in
force in the Colony as regards the cargoes of ships, entering in
distress and condemned as unseaworthy, in the event of reshipmentand
and
exportation in other bottoms.
In reference to the first enquiry, I have to inform your Grace that
no customs duties whatever are levied in the Ports of Vancouver's
Island, either on British or Foreign Goods, and that consequently,
though there be no express enactment to that effect; Foreign ships and
their cargoes have, in every instance, when driven into the Ports of
Vancouver's Island, by stress of weather, been exempted from all dues.
In reply to the second enquiry as to the regulations in force in
the Colony respecting the cargoes of ships entering in distress and
condemned as unseaworthy, the cargoes would also in that case be
exempted from all dues whether sold in the Colony, or reshipped in other
bottoms.
As your Grace further expresses a wish for any other information,
which may be useful with a view to the application of a reciprocal
treatment to British vessels in Foreign Ports, I will take the liberty
of drawing your attention to the unfortunate position of trade in this
Colony, which owing to its remoteness from the mother country, and from
any British Possession, is in a manner debarredfrom
from commercial
intercourse with them, as none of the staple productions of the country,
consisting of salt fish, sawn timber, Masts, and Coal, will defray the
simple expense of transport to any British possession. The Colonists
therefore send their Produce either to the Sandwich Islands or to the
United States Territory of California. In both those countries,
however, ad valorem duties are, to a greater or less extent, levied on
all foreign productions. At the Sandwich Islands those duties, in no
case, exceed 5 per centum on the Invoice valuation of the Goods
imported, but the import duties charged in the American Ports of
California; are much greater, ranging from 20 to 30 per centum on the
market value, and shipping charges, in the country, from whence the
Goods are exported. Thus for example, taking a ton of Vancouver's
Island Coal, its dutiable value at the American Port of San Francisco is
7 1/2 dollars, equal to 1.10 Sterling money; on that sum is levied a
duty of 30 per centum, which forms a charge of 9s/- a ton, or
something nearly equal to the first cost of the Coal.
Duties, on the same onerous scale, are levied in California on thesalt
salt fish, and timber imported from this Colony, while the Timber and
salt fish imported from the neighbouring American settlements in Oregon
are admitted duty free. The British Colonist must therefore enter the
field of enterprise under immense disadvantages as compared with the
American Producer, and thus notwithstanding the absolute freedom of
Trade granted to American vessels in the Ports of Vancouver's Island,
the British exporter is invariably met by an exorbitant duty, whenever
he enters an American Port.
The export trade of this Colony therefore languishes from the mere
fact of its yielding, in the circumstances I have described, a
precarious and at best a very small return for capital invested.
I would therefore most earnestly entreat your Grace, to take the
commercial position of this Colony into consideration, that it may
become a party to the advantages of any commercial regulations that may
be established between the United States and the British North American
Provinces, with the view of placing them on a satisfactory footing of
reciprocity.
I trust it may be in yourGraces
Grace's power to confer a boon that will
be so highly conducive to the general prosperity of Vancouver's Island,
and lend so much to the growth of its foreign trade. The exports of
Coal Salt Fish and Timber, would under less adverse circumstances,
increase at a ratio exceeding belief, and with that increase the wealth
and population of the Colony would progress with equal rapidity.
Vancouver's Island has many natural advantages, and is better
situated for foreign trade, than any inhabited part of American Oregon;
the Colonists though few in number are energetic, and with any thing
like a parity of circumstances will compete successfully with any other
people.
I have the honor to be
Your Grace's most obedient humble Servant
James Douglas
Governor
His Grace The Right HonbleThe Duke of Newcastle
Her Majesty's principal Secretary of State
For the Colonial Department
Minutes by CO staff
Mr Merivale
This should be sent to the Board of Trade with reference to the Circular
from that Office of the 15 June/53. It might be advisable to send a
copy of this desph to the F.O. with a view to getting some remission
of taxation in American Ports for VanCouvers Isld produce. I do not
think Lord Elgin's proposed Treaty includes this Settlement in its
provisions.
This should certainly be done—the matter is important to this
little settlement, & I am afraid none of us thought of Vancouvers' Island with reference to American reciprocity.
The American Govt proposed to include it in the Treaty: and we
objected on the ground that the Rights of the H.B.C. stood in the way of
our making concessions in respect of its fisheries &c. Under these
circumstances it was settled betwnLord Elgin and Mr Marcy that
the Treaty shd not extend to the Pacific Side of America. It appears
however from this Despatch that the Islandwd have benefitted greatly
by being included in the Treaty.
Draft, Colonial Office to E. Hammond, Foreign Office, 8 August 1854, forwarding copy of the despatch and drawing attention to the importance of including
Vancouver Island in any reciprocity agreements
with the United States.