No. 33
Downing Street
15 June 1860
Sir,
I transmit to you herewith copy of a correspondence between the
Hudsons Bay Company and this office on the subject of the operation of
the Customs Laws for
British Columbia.
It is not to be denied that where there is an extensive line of
coast or
frontier with an inadequate Customs
EstablishmentEstablishment smuggling may
prevail, and that commerce, carried on in a legitimate manner, will be
proportionally prejudiced. It is however impossible to increase that
Establishment whilst the trade of a Country is undeveloped.
Consequently the only alternative left for the Executive Government is
to fix upon certain ports where duties can be most conveniently
collected. This you would appear to have done by, in the first
instance, naming
Victoria andand afterwards
New Westminster as the ports
where vessels might be cleared for
British Columbia, and it's
dependencies.
But the Hudsons Bay Company represent in the accompanying letter
that the Proclamations which you have issued imposing duties, and naming
the places where they
should be collected, operate injuriously against
the fair-trader because they are incapable of enforcement against the
smuggler, and because they compel the Company to pay duty on goods not
intendedintended for consumption in
British Columbia. With respect to the first
complaint I can only express my hope that you will use all the means in
your power for preventing any illicit trade, which is carried on, though
I am sensible that the difficulty in doing so is great where the
Sea-board and frontier are so extensive, and the assistance of Customs
officers so small. If that difficulty is unsuperable it will furnish a
strong argument for raising the Colonial Revenue by other means than
customs
dutiesduties which will only fall on them who choose to pay them.
With regard to requiring the Hudsons Bay Company to pay duty on goods
not intended for consumption in
British Columbia, the Company seem to me
to have a primâ facie ground of complaint. On this point however I
cannot form any judgment till I receive your statement of the actual
facts of the case. Meanwhile I have pointed out to the Company that the
Proclamation of the
2nd of June 1859 makes it optional on vessels
going
toto places north of
Fraser's River to pay duty at
Fort Victoria or at
New Westminster, which must be intended as a convenience rather than a
restriction.
But there is a further and a very important point of view which is
suggested by these Proclamations. A Law enacted by the Authorities of
British Columbia cannot compel persons to acknowledge the authority of
Customs House officers in
Vancouver Island, nor subject them to
penalties for setting it
atat defiance. The authority which you possess
of making laws for
British Columbia does not extend beyond the limits of
that Colony and the sea within 3 miles of the coast. Therefore all laws
which you may pass professing to extend beyond that radius will (with
certain exceptions of a somewhat doubtful character) be simply
inoperative.
You must therefore take great care that no duties are collected for
British Columbia beyond the limits above described,
exceptexcept with
the concurrence or at the request of those who pay them. By any other
course you will run the risk of being called upon
to refund the duties
which you may have collected without warrant of the law.
I have the honor to be
Sir
Your Obedient Servant
Newcastle