Lytton writes Douglas confidentially to inform him that a new colony will soon be organised and they intend
to appoint him governor. Lytton also advises Douglas to sever all ties with the HBC or they will appoint a successor to his position as governor of Vancouver Island once the government reclaims the grant.
Confidential
16 July 1858
My public Despatch of this date will have shown you the high value
which Her Majesty's Government attach to your services, and at the same
time will guard you against some of the errors into which you may be led
by your position as an Agent of the Hudson's Bay Company, while at the
same time an officer of Her Majesty's Government.
I wish to inform you, confidentially, in addition, that a Bill is
in progress through Parliament to get rid of certain legal obstacles
which interpose to prevent the Crown from constituting a Government
suited to the exigencies of so peculiar a case, over the territory now
resorted to, according to report, by the multitudes whom the gold
diggings on Fraser's River have attracted.
It is proposed to appoint a Governor, with a salary of at least
£1,000 per annum, to be paid for the present out of a Parliamentary
vote. And it is the desire of Her Majesty's Government to appoint you
at once to that office, on the usual terms of a Governor's appointment,
namely, for six years at least, your administration of that office
continuing to merit the approval of Her Majesty's Government, this
Government to be held, for the present, in conjunction with your
separate Commission as Governor of Vancouver's Island.
With regard to the latter, I am not at this moment able to specify
the terms as to salary on which it may ultimately be held, but your just
interests would, of course, not be overlooked.
The legal connexion of the Hudson's Bay Company with Vancouver's
Island will shortly be severed by the resumption by the Crown of the
grant of the soil. And their legal rights on the continent opposite
terminates in May next, at all events, by the expiry of Her licence, if
Her Majesty should not be advised to terminate it sooner on the
establishment of the new Colony.
It is absolutely necessary, in their view, that the administration
of the Government, both of Vancouver's Island and of the main land
opposite, should be intrusted to an officer or officers entirely
unconnected with the Company.
I wish, therefore, for your distinct statement, as early as you can
afford it, whether you are willing, on receiving the appointment which
is thus offered you, to give up, within as short a time as may be
practicable, all connexion which you may have with that Company, either
as its servant, or a shareholder, or in any other capacity.
I make this proposal without discussing at present the nature and
extent of your actual connexions with that Company, but with the
acquiescence of the Governor of the company, who has seen this Despatch.
In the meantime, and awaiting your answer, it is my present
intention (liable only to be altered by what may transpire in future
advices from yourself) to issue a Commission to you as Governor; but you
will fully understand that unless you are prepared to assure me that all
connexion between yourself and the Company is terminated, or in course
of speedy termination, you will be relieved by the appointment of a
successor.
I make this proposal briefly, and without unnecessary preface,
being fully assured that you will understand, on the one hand, that Her
Majesty's Government are very anxious to secure your services, if
practicable, but, on the other, that it is quite impossible that you
should continue to serve at once the Crown and the Company, when their
respective rights and interests may possibly diverge, when at all events
public opinion will not allow of such a connexion.