No. 60
               
            
            
               
               
                     Downing Street,
                     
                  
               30 December 1858
               
               Sir,
                
            
            
               I have to acknowledge your [
Vancouver Island] despatches N
o 39 of
               the 
9th September and N
o 3 of the 
12th October
               last,
               
               on the state of affairs in 
British Columbia, the latter containing a
               detailed report of your observations during a visit to the 
Frazers River
               territory from

 which you had then just returned.
               
               I can but repeat (and I do so with great pleasure) the testimony
               which I have already borne to your energy and promptitude amidst
               circumstances so extraordinary as those in which you found yourself
               placed, and to assure you of the sense entertained by Her Majesty's
               Government, of the capacities you have thus signally evinced.  The
               information which your despatch conveys is likewise of the most valuable
               kind.
               
            I
             
            
            
               I await with much interest the reports which farther acquaintance
               with the resources of the Colony will enable you to make of the probable
               revenue to be derived from it in the course of the following year.  I
               was fully prepared for the accounts which your despatches convey of the
               high price of all articles of necessity and convenience, and the
               dearness of transport; and I recognize (as I have done on another
               occasion) your equitable right to a considerable advance of Salary
as
 as
               soon as the revenue under sagacious management and thoughtful economy
               warrants that expenditure on official incomes which would at present be
               wholly inadmissible.  But I have dealt with the subject of the financial
               position of the Colony in another despatch of this days date.
               
               All doubt as to your power to impose a duty on imported articles
               will now have been removed, since the general words of the recent Act of
Parliament
               Parliament and Charter of the Colony, have plainly invested you with
               this as well as other legislative authority.  The amount which it may be
               desirable to impose must be mainly regulated, in the first instance, by
               your own judgment and experience, tho' I will own that at this distance
               it appears to me that ad valorem duty of 10 per Cent, is somewhat too
               high and may defeat its own object.  I desire not, however, in hazarding
               this opinion to shackle the
judgment
 judgment of a Governor who has shewn himself
               so able.  I cannot conclude without expressing my cordial approval of
               the manner in which you appear to have carried out the two objects which
               at the onset of such a Colony should be steadfastly borne in
               view—viz
t
               a liberal and kindly welcome to all honest Immigrants, and the
               unquestionable supremacy of British Sovereignty and Law.
               
               I have the honor to be
               Sir,
               Your Most Obedient
               Humble Servant
               
E B Lytton