No. 1
6th March 1855
I have the honor to acknowledge the receipt of your Despatches of the numbers and dates noted in the Margin,
Originals No. 7, 18 December, and No. 8, 18 December 1854. Circulars 7 and 13 December 1854. Duplicates No. 5, 24 October 1854.
with their enclosures.
I herewith transmit the return as directed by your Circular Despatch of the 13th of December 1854,whichManuscript image which is a mere blank; no Laws of quarantine having been established or considered necessary in this Colony.
Extract to War Dt. War Dep 10301/54.
I observe by your Despatch No 7, of the 18th December last, that Her Majestys Government, do not approve of the measures adopted by me with the advice and consent of Council, for the protection of the settlements, and that they cannot sanction or hold themselves, in any way responsible for the outlay incurred on that account, as a charge upon the Imperial Treasury.
This decision on the part of Her Majesty's Government, places me in a position of peculiar difficulty, and leaves me no discretionary power, to protect the settlements in cases of great public danger. In the instance alluded to, the vessel chartered from the Hudsons Bay Company, was discharged after 20 days employment in theserviceManuscript image service of the Colony, and the expenditure on that account, amounts in all to 400.
I have been on all occasions, frugal I believe, beyond example of the public means, and it was with the utmost reluctance, that I was induced to incur the expenditure in question under the pressure of great public excitement, and from the consideration, that Her Majesty's Government would be justly dissatisfied, if the settlements suffered through any calamity, which it was within the reach of reasonable and ordinary means to avert.
I trust that in those circumstances Her Majesty's Government will not allow me to become the victim of my exertions for the public service, but will in due time provide for the payment of the expenditureinManuscript image in question.
Extract for F.O. Gov 10700/54.
I observe by your Despatch No 8, that Vancouver's Island, is not included in the Reciprocity Treaty with the United States, a circumstance much regretted by the people of this Colony, who would have reaped very important advantages from its coming into operation here.
I have the honor to be Sir
Your most obedient humble Servant
James Douglas

I have etc.
The Right Honble Sir George Grey Bart
Her Majesty's principal Secretary of State
For the Colonial Department.
Minutes by CO staff
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1. The ans: to the Quarantine Circular should be sent, as usual, to the Board of Health.
Done 1 June.
2. The passages of this despatch which relate to the Governor's employment of the Hudson's Bay Co's vessel for the alleged defence of the Settlement should be referred to the War Dt with refce to theManuscript image former correspondence, and as 3. The Governor has mixed up three subjects in one despatch, which he has been requested not to do, I wd Suggest that he be directed to avoid a repetition of that irregularity.
ABd 29 May
The course proposed as to the above points may be followed but it would be well to ascertain whether anything should be done as to the including of V. Island in the Reciprocity Treaty with the U. States. Mr Merivale may have some acquaintance with that subject.
JB 30 May
The passage relating to the Reciprocity Treaty may be extracted & sent to the F.O. without comment. The Govr will, I trust, be borne harmless for his expenses out of the Trust fund.
JR May 30
Other documents included in the file
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Draft, Colonial Office to F. Peel, War Department, 9 June 1855, forwarding extract of the despatch relating to the expense "incurred in chartering the Hudson's Bay Company's Ship."
Minutes by CO staff
Dft to F.O. annexed.
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Mr Merivale
If it is intended to throw the expense off this Country, & on the Company perhaps you will see whether that can be done. See the Clause in the Grant which I have marked.
Other documents included in the file
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Draft, Colonial Office to E. Hammond, Foreign Office, 9 June 1855, forwarding extract of the despatch relating to the reciprocity issue for consideration.
Minutes by CO staff
Passed to Lord J. Russell with the draft to Mr Peel.
Dft to War Dt annexed.
Manuscript image Adverting to Lord J. Russell's minute of the 30th ulto I would invite his Lordship's attention to Mr Peel's note on 6353/54. It is not known whence Mr Peel derived his information.
I think the letter may go as it is. It is to be presumed that the Foreign Office possesses full knowledge.
Other documents included in the file
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Draft reply, Molesworth to Douglas, No. 1, 3 August 1855, on the customs incident between Swanston and Sangster, and related subjects.