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Despatch from London
Pelham-Clinton, Henry Pelham Fiennes to Douglas, James 11 May 1861, LAC RG7:G8C/2, 459.

Abstract
Despatch from London. Enclosures (untranscribed) (1).
Newcastle informs Douglas that The Victoria Harbour Act of 1860 has been reviewed, and, should Douglas choose to proceed, will be approved. Newcastle also tells Douglas that he has the ability to raise loans in the colony, but not to issue paper money & Letters of Credit as a Legal tender.
No. 57
Downing Street
11 May 1861
Sir,
I have the honor to acknowledge the receipt of your despatch No. 1 of the 5th of January last, transmitting the copy of an Act passed by the Legislature of Vancouver Island, but to which you have withheld your assent pending the receipt of instructions from Her Majesty's Government entitled "the Victoria Harbour Act of 1860."
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I am aware of no objection to this Act, and on receiving it from you in an authenticated shape, I shall be prepared to submit it for Her Majesty's Confirmation.
With respect to the doubt which had occured to you whether under the terms of the Queen's instructions to you as Governor of the Colony, you are at liberty to assent, without previous sanction of Her Majesty's Government, to Acts for contracting loans, I have toinformManuscript image inform you that the clause in your instructions to which you allude was not designed to restrain the Colonial Government from incurring debts, but has reference to the issue of paper money & Letters of Credit as a Legal tender.
I have the honor to be,
Sir,
Your most obedient
humble servant,
Newcastle
Documents enclosed with the main document (not transcribed)
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Newcastle to Douglas, 29 May 1861, enclosing warrants on following pages, dated 20 May 1861, appointing Donald Fraser, David Cameron, and Alfred John Langley members of the Council.