No. 42
27 August 1859
My Lord Duke
With reference to the various Despatches I have recently fowarded upon the Subject of the occupation of San Juan by American Troops, and to my mention of the arrangements I had deemedManuscript imagedeemed it requisite to make for the protection of Vancouvers Island, by withdrawing the Royal Marines from British Columbia and stationing part of them upon Vancouvers Island, I have the honor to inform Your Grace that I have been compelled to provide the necessary accommodation for these Troops, and I have therefore built a small Barrack for them at Victoria in as cheap a manner as possible.
2. The outlay occasioned thereby will amount to about Two Thousand Pounds (£2000).
3. IManuscript image3. I have no funds to meet this expense which I have been compelled to incur, for an Imperial and not for a Colonial purpose, for Her Majesty's Territory is actually threatened by the near proximity and attitude of a large Body of United States Troops unjustifiably occupying a portion of Territory, which although disputed, has notwithstanding always been regarded by Her Majesty's Government as a dependency of Vancouvers Island; and I have felt it imperative upon me to take such measures to guard against any possible contingencyManuscript imagecontingency, as the means at my command enabled me to adopt.
4. I doubt not that the whole matter will eventually be amicably arranged by the two Governments, but in the mean time the excitement occasioned by the act of occupation throughout Oregon and Washington Territory, and even in California, has been very great.
5. I have drawn upon Her Majesty's Paymaster General for the Sum of TwoManuscript imageTwo Thousand Pounds for the before mentioned reason, and I trust Your Grace will be pleased to obtain the requisite authority from the Treasury, so that the Bills may be paid when due.
I have the honor to be My Lord Duke
Your Grace's most obedient humble Servant
James Douglas

His Grace
The Duke of Newcastle
&c &c &c
Minutes by CO staff
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Mr Elliot
This is an Imperial not a Colonial Expense. As such the War Office is, I presume, the proper Dt of Govt which should apply to the Treasury for means of payment.
ABd 10 Oct
I do not think it is necessary to make that circuit and it might possibly produce an appearance of doubting about the propriety of the Governor's step. I would therefore rather Manuscript imagesimply send a copy of the despatch direct to the Treasury & recommend that the Governor's bill should be accepted and paid.
TFE 10 Octr
The Treasury will probably ask how so large a sum can have been so quickly spent in temporary barracks for so few men.
Copy however without comment to Treasury.
N 12
Other documents included in the file
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Draft, Merivale to G.A. Hamilton, Treasury, 22 October 1859, forwarding copy of the despatch.
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Draft, Elliot to War Office, 5 November 1859, forwarding copy of the despatch and subsequent letter from Treasury on the subject.
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Draft reply, Newcastle to Douglas, No. 2, 5 January 1860, forwarding a copy of a letter from the Secretary of State for War requesting necessary details for the expenditure which has been incurred upon Barracks or upon other services.