 
                  
                  
                  
                  
                     I have gone very carefully through the Papers which relate
                     to the "grievances" of these two Colonies and ask for
                     Representative Institutions in the former case and a Reform
                     of Institutions in the latter.
                     
                  
                  
                     I have purposely postponed the consideration of the
                     future Constitution of the 
Govt of 
British Columbia till
                     the present time, but in putting by from time to time the
                     papers as they came in it unfortunately escaped my notice
                     that they were thus left unacknowledged and I find that
                     three Memorials are thus neglected.  I am sorry for what has
                     thus not unnaturally attracted the unfavorable notice of
                     the Colonists,

 but it cannot now be helped.
                     
                     Before considering what concessions shall be made to the
                     Memorialists in either Colony it is necessary to consider
                     whether the present system of governing them both by
                     different Institutions under one Governor shall be continued.
                     I think there are manifest objections to this plan in theory,
                     and practice has proved to be in conformity with theory.
                     I wish I could unite the two under one Governor and one
                     system of Political Institutions. I have no doubt that
                     the future progress and prosperity of the Colonies would
                     be much promoted by such a Union, but unluckily the
                     jealousies—I might almost say, hatreds—between the two
                     have become so great and such

 opposition of interests have
                     been allowed to grow up that I believe it would be almost as
                     hopeless to attempt to amalgamate the two as it would be to
                     rejoin the Confederate with the Federal States and the act
                     of forcing them into a union would probably retard the time
                     for a willing and hearty junction on grounds of mutual
                     interests and a juster perception of the strength and safety
                     to which it would conduce. If then the attempt at complete
                     fusion is at present impossible, it is only keeping open
                     the existing rankling feuds to continue the form (without
                     any substance) of a half-union by means of having the same
                     Governor. If I could establish a Legislative union I

 should
                     feel that I was accomplishing a good, but failing that I
                     see nothing but evil in continuing an Executive union—either
                     in whole or in part.
                     
                     On the other hand I would studiously avoid any act
                     which should introduce fresh obstacles to the union.  If I
                     cannot give as yet the 
same Institutions to 
British Columbia
                     as 
Vancouvers Island possesses I would give nothing 
at variance
                     with them but on the contrary such as may easily
                     be developed into the same when the progress of the Colony
                     fits its population for them.  I would also name one of the
                     Officers "Governor in Chief" and the other "Lieut
t Governor"

                     pointing out to each Colony that this is in accordance with
                     the present practice in the Eastern States of British North
                     America and will not entail subordination in Administrative
                     Affairs, but will be found most conducive to joint safety
                     in all matters in which communication with Naval Officers
                     may be requisite or in any difference with Foreign Powers
                     such as lately occurred in reference to the 
Island of San
                        Juan.  Whether the "Governor in Chief" should be the senior
                     or be always the Governor of the larger Colony I am not quite
                     clear.  Of course two salaries will be requisite, and they
                     cannot be less than £3000 each, but I

 have no doubt they will
                     be readily granted by each Colony in return for the boon of
                     separate Governors, and 
British Columbia must also provide a
                     Governor's house of moderate dimensions.
                     
                     The Act for providing for the 
Govt of 
British Columbia
                     expires at the end of the present Session of Parliament.  It
                     is therefore necessary to consider in connection with the
                     question of the future Constitution of the Colony whether fresh
                     Legislation is necessary, and if so what should be its provisions.
                     1. It might be renewed.  2. It might enact the details of a
                     new form of 
Govt.  3. It might give power to 
The Queen to
                     provide those details.  The first I think very unadvisable.

                     The second would be liable to the objection of being unimprovable
                     in cases of early necessity and upon further information
                     except by another Act.  The third seems to me the best, if
                     indeed any Act is at present necessary.  The present Act
                     seems to me to give all the requisite powers to 
the Queen,
                     and if we are prepared to pass an Order in Council before the
                     end of the Session I incline to think that legislation  may be
                     dispensed with.  On this point however I should be glad of
                     the opinion of 
Sir F. Rogers.
                     
                     I have not come to the conclusion that it is unadvisable
                     to give to 
B. Columbia similar Representative Institutions to

                     those enjoyed by 
Vancouvers Island without some hesitation.  The contrast
                     is an evil in itself. I do not think however that the fixed population
                     is large enough to form a sufficient and sound basis of
                     Representation whilst the migratory element greatly exceeds
                     the fixed, and the Indian element far outnumbers both together.
                     Of landed proprietors there are next to none, and gold is the
                     only produce of the Colony.  Legislation cannot with safety
                     be entrusted to Men who have no vested interest in the Colony
                     and those who have a stake in it as yet have but a small one
                     and are so few that they could not alone form a Constituency.
                     The number

 of Men fit to be Representatives is proportionably
                     
                     smaller.  To commit the Legislation of the Colony to such
                     men would be to make the future prosperity of the Colony
                     subordinate to the local and personal interests of a few
                     Tradesmen in the Towns—or rather Villages, for I believe no
                     aggregate of houses except at 
New Westminster exceeds the
                     number of 50 or 60—and even these Tradesmen in many instances
                     having little of the character of fixture in the Country.
                     The result would be frightful jobbing in that great essential
                     for the Colony—road-making—and the present impatience of
                     taxation which is seen throughout the Memorials and complaints
                     would

 develope itself in the form of resorting to Loans for
                     every purpose of Public Expenditure. "Responsible Government"
                     for which the Memorial asks is simply ridiculous, and without
                     it the 
Govt would fall into the hands of a Clique whose rule would soon be felt by the Colony
                     more obnoxious than that
                     of any Governor who could be selected.  Every preparation for
                     a Representative form of 
Govt should however be made, and
                     I should wish to see Municipal Institutions which have been
                     successfully given to 
New Westminster extended to 
Yale, 
Hope,
                     
Lytton, 
Cayoosh, 
Douglas, and 
Alexandria.
                     
                     The Question then is what

 is to be the changes to be
                     effected at once?  I would begin where we are now ending in
                     
Vancouver's Island. I would establish an Executive Council
                     consisting of the 5 or 6 principal Officials of the Colony who
                     must reside at 
New Westminster.  All Acts of 
Govt would
                     then be done by the Governor in Council.  I would further
                     constitute a Legislative Council in which there should be an
                     infusion of the Representative Element.  It should not
                     consist of more than 15 Members, of whom 5 or 6 would be the
                     same as the Executive Council, 4 or 5 Magistrates from 
Cariboo
                     and other remote portions of the Colony, and

 5 elected by the
                     Towns, one of them by 
New Westminster, & the others by a
                     united Constituency of 2 or 3 of the other Towns. Before long
                     other Towns will spring up and will ask for Representatives.
                     I hope they will be given and thus increase the proportion of
                     Elected Members. When the population of fixed character has
                     sufficiently increased I should then hope that the Legislative
                     Council might be separated into two—the nominated members
                     remaining as the Upper House or Legislative Council, the
                     Elected Members with further addition to their Numbers
                     constituting the Lower

 House or Legislative Assembly.
                     
                     The Constitution of the two Colonies would then be
                     assimilated, and nothing would be wanting to their Union
                     but their own good will and an adjustment of the difficulty
                     of 
Victoria being a Free Port and Customs duties being levied
                     at 
New Westminster.
                     
                     The Governor must lay before the Legislative Council full
                     statements of Expenditure and must initiate in it all money
                     votes.
                     
                  
                  
                     I would at once make known that this Body is constituted
                     as a preliminary to the introduction of regular Representative
                     Institutions, and

 am rather inclined to name some number of
                     inhabited house holders as requisite for that further change
                     with a view to the prevention of an immediate revival of
                     agitation.
                     
                     If the Engineers were not about to be withdrawn, thus
                     leaving the Colony without any Imperial Soldiers, I would at
                     once introduce a stipulation that Military Expenditure should
                     be borne wholly by the Colony, but as matters now stand
                     perhaps it will be better not to touch the subject until
                     Troops are asked for.
                     
 
                  
                  
                     I have but little to add respecting 
Vancouvers Island.
                     I have suspended for a short time the Supplementary Commission
                     for constituting an Executive Council.  It may now proceed,
                     as part of the changes about to be made.
                     
                     In a paper which I subjoin from 
Mr Maclure who lately
                     called upon me with a long Catalogue of the "grievances" of
                     the Island, four new Members are asked for for the Town of
                     
Victoria.  It is no doubt inadequately represented so far as
                     Population alone is considered, but I have no

 doubt it supplies
                     many of the Members for the Country Districts though he says
                     they are mainly in the hands of the Old Servants of the
                     Hudson's Bay Company.  Within the last few days a despatch
                     has been received saying that 
two more Members have been
                     allotted to 
Victoria.  I think the 
Secy of State ought
                     not to interfere in increasing the numbers of the Legislative
                     
Assembly and would leave this question—especially now that
                     it has been increased—to local legislation, but his remarks
                     about the Legislative Council should be referred to the New
                     Governor.
                     
 
                  
                  
                  
                  
                     I think the present opportunity should be taken to annex
                     
Stickeen to the Colony of 
British Columbia.  I see no other
                     way of adequately providing for its Government without making
                     it a separate 
Govt at the expense of the Mother Country,
                     which must be avoided.
                     
                     
—————
                     
                     As regards the various grievances

 contained in the Memorial
                     other than those of want of Popular Institutions, they mostly
                     resolve themselves into a demand for a New Governor.  Such
                     are the complaints of want of Surveys, the expensive and
                     inefficient Roads, the management of the Lands, &c &c.
                     I think these must be left to be dealt with by a new Governor.
                     
                     
—————
                     
                     I wrote privately to 
Mr Douglas by the last Mail telling him that I should soon deal with the subjects treated of
                     in this
                     Minute,

 and that I should when my plans were complete relieve
                     him of both Gov
ts.  I made this as little unpleasant to
                     him as I could, and told him that when I wrote to him Officially
                     I would take every care to prevent his enemies having a triumph
                     over him.
                     
                     
—————
                     
                     I circulate this to 
Mr Blackwood, 
Mr Elliot, 
Sir F.
                        Rogers, and 
Mr Fortescue, and court the fullest criticism from
                     all and each on the principle and details.  It is an important
                     question and

 I shall be gratified for any suggestions.
                     
 
                  
                  
                  
                  
                     On this point I have no observations to make.  If the
                     
Duke of Newcastle adheres to his present opinion that
                     amalgamation is impossible (for which certainly there
                     appear to be conclusive grounds) nothing seems to remain
                     except to direct 
Mr Gairdner to pass on at once the
                     Letters Patent constituting the Executive Council.
                     
                     
1;2.££
Stekeen Territory
                     
                     There can I suppose by little doubt that this territory
                     should be annexed to 
B. Columbia.  But for this an Act
                     of Parliament will be necessary.  The existing Act for
                     the government of 
British Columbia defines expressly
                     the boundaries of that Colony and I apprehend those
                     boundaries cannot be enlarged without another Act of Parliament.
                     
                     
1;3. 
Constitution of British Columbia
                     
                     I will say at once that my own inclination is in favour
                     of the
old
 old fashioned Legislative Council, with one
                     modification.
                     
                     I would in the first instance have a council say
                     one half of officials and half nominees—the nominees
                     being distinctly informed that they were only nominated
                     for a fixed period—say one or two years.
                     
                  
                  
                     These nominees (as in Ceylon) should be so chosen
                     as to represent interests or localities, and the Council
                     should be in the first instance much short of its full
                     number, so that the Governor should have the power of
                     putting in fresh men, as different interests and localities
                     appeared to require a voice in the Legislature.
                     
                  
                  
                     I think after a very short experience of this mode
                     of Government the Governor would be able to see more
                     clearly than we can now, how a satisfactory Legislature
                     could be composed—
what
what towns or districts should be
                     represented—how the Gold Fields should be represented—and
                     how the interests of Indians, Chinese, and season
                     miners could be best protected.
                     
                     Then and not till then I should be disposed to adopt
                     in form and letter, a partially elective Legislative body
                     as proposed by the 
Duke of Newcastle—with the further
                     view (as proposed by His Grace) of proceeding onward to
                     the normal two Houses.
                     
                     My reason for this tentative method is the difficulty
                     of at once constructing such a Legislature as can be relied
                     on.
                     
                  
                  
                     I find it difficult to obtain much detailed information
                     respecting the mode in which population is scattered over
                     the country. But the following supposition may at any
                     rate serve to illustrate our difficulty.
                     
                  
                  
                     The unrepresented population
are
 are not I imagine less
                     than as follows:—
                     
                     
                     Scattered Indians—————say           10,000
                     
                     Chinese——————————say            5,000
                     
                     Miners (500 miles from N. West)  5000
                     
                     (350 miles from N. West)   500    
5,500
                     
                     20,500
                     
                     
                     The 
resident population which will comprize somewhat
                     more than the 
represented population is probably short of
                     2000 persons scattered along the 500 miles between 
New
                        Westminster and 
Cariboo and along the 350 miles between 
New Westminster
                     and 
Rock Creek, and occupying, besides 
New Westminster and the Diggings,
                     some half-dozen intermediate villages along these two lines.
                     
                     A find of Gold here or there may at any time change
                     the relative importance of these different clusters of
                     residents, so that any distribution of the franchise as
                     between electoral districts

 must be provisional. And the
                     coincidences or conflicts of interests which may exist
                     between residents and non-residents and between different
                     classes of residents has not yet been tested by any
                     political action. Therefore the assignment of qualifications
                     with a view to secure the representation of interests must
                     also be more or less provisional. Yet any grant of a
                     franchise once given can hardly be recalled, and so may
                     prove exceedingly embarrassing a very few years hence.
                     
                     Those few years will make a great difference.  The
                     progress of the Country is very fast, and the next Governor
                     will I suppose go out with the distinct function of feeling
                     his way towards constitutional or quasi-constitutional
                     government.  If he chooses representative men for unofficial
                     members of his Council, and takes trouble to inform himself
                     about the wishes & habits of the population he ought soon
                     to be in a position to submit a definite and workmanlike
                     scheme of representation.
                     
                  
                  
                     It may be some little reason for adopting this course,
                     that a mere Legislative
Council
 Council could be established at
                     once under the present Act, and the instrument could be
                     sent out in time to reach 
B. Columbia before the end of
                     the present Session of Parliament when the present 
British Columbia Act expires.
                     
                     But it would be I should think quite impossible,
                     before that Act of Parliament expires, to set afloat a
                     Constitution involving an electoral machinery.  A Constitution
                     therefore would involve the passing of an Act to continue
                     the present Act, and a consequent Parliamentary discussion.
                     However this may be raised even by the 
Stekeen Act, or without it.
                     
                     If the immediate adoption of an elective system is
                     decided on, it appears to me
                     
                  
                  
                     1. that in some way or other the gold fields ought to be
                     represented (they are so in Australia)  [marginal note:  I annex a
                     recent N. Zealand Act].
                     
                  
                  
                     2. that there would be some difficulty in bringing the
                     Magistrates away from their duties to sit in Council, unless
                     (which is very possible) Legislation were always to be
                     carried on in winter when there is comparatively
little
 little
                     white population in the Colony.
                     
                     My own disposition therefore would be without delay to
                     pass an Order in Council under authority of 21 & 22 Vic. c. 99
                     S.S. 3—constituting a Legislative Council to be composed of
                     such persons as 
the Queen, or Governor (provisionally)
                     might appoint.  Such council not to consist of more than 15
                     persons.
                     
                     To send this out to the Governor telling him that the
                     Council is in the first instance to be composed of 5
                     office holders and 5 persons so chosen as to represent
                     the different interests and feelings of the Colony and
                     Colonists; and that he will be at liberty, if he shall
                     think fit, to accept as such representative any person
                     suggested to him by a Municipal Corporation or even a
                     public meeting called at his desire and manifestly
                     representing the desires of any important locality—that
                     the persons so nominated must be considered as holding
                     Office only for a year (unless Her Majesty should
                     otherwise think fit) and that the whole arrangement is
                     to be viewed as provisional
and
 and preparatory.  I would
                     state the reasons for this tentative mode of proceeding
                     in a manner calculated to make it acceptable to the
                     Colonists—the tenor of the communication being to
                     assure them that the object of the delay was not to
                     refuse representation, but to secure that the
                     representation should be just and effective.
                     
                     It is to be observed—and I think is not a disadvantage—that
                     when Her Majesty has once exercised the power of giving
                     a Legislature it cannot be re-exercised without passing a
                     fresh Act of Parliament.  This Circumstance will operate
                     as a gentle drag on the progress of Free Institutions, which
                     I should think desirable, considering that every year
                     diminishes the objections to the introduction of those
                     institutions in 
B. Columbia.
                     
                     But N.B. The Governor should either know before the
                     beginning of August whether the existing Act will be
                     continued, or should be invested with fresh powers of
                     government by Order in Council.
                     
                  
                  
                   
                  
                  
                  
                  
                     This subject, having reference to the exchange of the
                     Crown Lands for a Civil List, has in point of fact, been
                     mooted by 
Governor Douglas only.  This Office, feeling that
                     the time had not arrived for indicating its views or intentions
                     has hitherto remained silent whenever 
Governor Douglas broached
                     the subject.  But the decision of the 
Duke of Newcastle to
                     place 
Vancouver Island and 
British Columbia under separate
                     Governors, and carry out a system of regular constitutional

                     Government in each of them necessarily imposes on this Office
                     the duty of investigating the materials we possess in order
                     to arrive at some definite conclusion as to the wishes of the
                     Inhabitants of 
Vancouver Island for the acquisition of the
                     Crown lands—as to the present and prospective value of that
                     Estate and as to the amount of the Civil List which the Crown
                     would on its surrender be justified in requiring.
                     
                     It appears that up to the beginning of 
1859 Governor
                        Douglas had been in the habit of drawing on the Hudson's Bay Company
                     for such funds as were necessary for carrying on the Government
                     of 
Vancouver Island; but that, when a certain progress had been
                     made towards the repurchase of that Island by the Crown, the
                     Company declined to make any further
advances
 advances.  Under those
                     circumstances 
Governor Douglas having applied for instructions,
                     and having been informed that he must provide for the expenses
                     of the Colony out of local resources announced various measures—such
                     as an extension of the franchise & an enlargement of
                     the House of Assembly—preparatory to an application to the
                     House to make the necessary provision.  He reported that the
                     Legislature would doubtless make an urgent appeal for the
                     control and entire disposal of all monies arising from the
                     sale of Crown Lands and other sources of revenue; and begged
                     to know, as soon as convenient, whether H.M.'s Government
                     would sanction such an arrangement, the Colonial Legislature
                     undertaking to defray the expense of a Civil List.  No answer
                     was returned to this request: but in the Session of
1860 1860
 1860 an
                     Act was passed appropriating salaries to the Governor, Chief
                     Justice, Colonial Secretary, Treasurer, Surveyor General and
                     Attorney General in which a proviso was introduced
                     
                     that the salaries aforesaid shall not be paid out of, or charged
                     upon the revenue aforesaid (i.e. the general revenue) until the
                     entire revenue of the Colony of 
Vancouver Island and its
                     dependencies, and the control of the public lands situate
                     within the said Colony shall have been placed under the control
                     of the Legislature.
                     
                     
                     A similar provision was also inserted in the Appropriation
                     Act for defraying the expenses of the public departments.
                     
                  
                  
                     The Session of 
1861 produced appropriation Acts similar in
                     amount, and with the same provisos as were contained in the
                     Acts of 
1860.  The
Governor
 Governor wrote as follows with regard to the
                     Acts of 
1861.
                     
                     
                     The sum of £3200 was voted to meet the Civil List Salaries, namely,
                     
                     The Governor .............. £800
                     
                     Chief Justice .............  800
                     
                     Colonial Secretary ........  500
                     
                     Treasurer .................  400
                     
                     Surveyor General ..........  400
                     
                     Attorney General ..........  300
                     
                     subject to the proviso that the entire revenue of the Colony,
                     whether derived from taxation, or sales of Crown lands,
                     shall be placed at the disposal of the Colonial Legislature.
                     That sum is however, admittedly inadequate to maintain the
                     Chief Officers of an important Colony in a respectable
                     position, and would not fairly represent the relative
                     importance and responsibility of the

 Offices they hold.
                     
                     The House would not I believe, have objected to a more
                     liberal Civil List, had I been in a different position, but I
                     did not think it expedient to ask for a larger sum on behalf
                     of 
Vancouver Island than is allowed by H.M.'s Government for
                     the support of the Civil Establishment in 
British Columbia:
                     and another motive for exercising the most rigid economy,
                     which had great weight with the House, was the fear of
                     imposing a burden upon the Colony greater than it is at
                     present capable of supporting; a reason which ought to have
                     its proper influence and consideration; but I would nevertheless
                     submit that there should be no formal surrender of the Crown
                     Revenues to the Colonial
Legislature
 Legislature until it has made a
                     sufficient provision for defraying the cost of Her Majesty's
                     Civil Establishment according to another scale which I propose
                     to bring forward at the next Session.
                     
                     The sum of £3207 was voted for defraying Departmental
                     Expenses, with the same restrictive proviso as to the payment
                     of the amount out of the general revenue of the Colony.
                     
                     
                  
                  
                     The appropriation Act for the service of 1862 contained
                     the same provisos as were inserted in the Acts of 1860 and
                     1861.
                     
                  
                  
                     No notice has been taken by this Department of the provisos
                     in the above mentioned Acts.  It has doubtless been understood
                     in the Colony that the Crown was not in a condition to enter
                     upon
any
 any discussion relative to a surrender of its Lands in
                     exchange for a Civil List until the negotiations with the
                     Hudson's Bay Company had been completed: and the Colony has
                     probably been willing to wait the convenience of H.M.
                     Government.  Enough, however, has been elicited from the
                     successive stipulations in the Appropriation Acts to prove
                     that the wishes of the inhabitants of 
Vancouver Island, as
                     expressed by their chosen representatives, are
                     unmistakeably in favor of having the Crown Lands made over to
                     them, in exchange for a Civil List.  As that point is
                     ascertained it will not be necessary for me to touch upon
                     the expediency of complying with their wishes. The experience
                     of the past, and the sentiments which, I believe, I am not
                     incorrect in ascribing to the 
Duke of Newcastle on this subject,
                     lead me to the assumption that His Grace views
with
 with favor the
                     proposed exchange.  If I am right it becomes only a question
                     of what is the value of the Crown Lands the Government has
                     to surrender—what shall be the amount of the Civil List
                     which should be asked for in exchange—and when is the fitting
                     time for the negotiation.
                     
                     As to the present value of the Crown Lands I find
                     that in 1860 the sales produced £4576.  In 1861 and 1862 we have
                     received no definite information from the Governor on the point.
                     
                  
                  
                     As to the 
prospective value of this property it is
                     impossible to predicate what it will reach.  It has been
                     calculated that in an area of 12 million acres in 
V.C.I.
                     there are about one million acres of cultivable land;
and
 and
                     about 100,000 acres either purchased or pre-empted.  It is
                     not to be supposed that the price of Crown Lands will remain
                     very long at the present rate of 4
s/2
d an acre.  The rapid
                     material advance of 
Victoria, arising from its propinquity
                     to a gold producing Colony—the existence of a free port—the
                     Naval Harbor of 
Esquimalt and head quarters there of the
                     Naval Squadron—the possibility of telegraphic and postal
                     communication with 
Vancouver Island, via 
the continent of
                     British North America, are strongly in favor of the supposition
                     that this Colony will become a favorite one for settlers,
                     and that land will much increase in price.  If therefore in
                     
1860 the revenue derived from Crown Lands reached upwards of
                     £4500, I think we may venture to assume that this year it
                     will have produced 5 or £6000
                     
                     
                     
                        
                           
                           N.B.  In an enclosure to the Govrs desph of the
                           4 March/63 The Crown Land Sales are estimated at
                           nearly £5000.  The amount netted it £4500.
                           
                        
                      
                     and that in a few years time it
                     will arrive at a much larger figure.  But we have so little
                     data for forming an opinion on this point that it would seem
                     to be unavoidable for this Office still to postpone a final
                     settlement on the subject until a new Governor shall, after
                     enquiry on the spot, have procured the requisite complete
                     information.
                     
                     I should suppose, therefore, that at a suitable moment
                     the new Governor would be empowered to announce that H.M's
                     Government will agree to exchange the Crown Revenues in
                     return for a reasonable, but sufficient Civil List, which
                     should be settled either for a term of years or for a
                     permanent period.  It should be insisted upon that the
                     right of initiating Money Votes should be vested in the
                     Government. This
restriction
 restriction affords some security against
                     the improvidence and jobbery which too frequently occur in
                     Colonies. When 
Mr Merivale was considering in 
1860 the
                     question of surrendering the Crown Revenue in 
Vancouver
                        Island in exchange for a Civil List he expressed his views
                     in a Minute which I cannot do better than transcribe:
                     
                     
                     My inclination on the whole would be to transfer the
                     property on the following conditions.
                     
                  
                  
                     Defraying all the Civil Establishment.
                     
                  
                  
                     And certain Military expenses, to be fairly settled
                     beforehand.
                     
                  
                  
                     Provision that H.M's Vessels and Military Departments
                     should have at all times ensured to them a supply of coal
                     free of cost (or under advantageous terms to be settled by
                     the Governor).
                     
Perhaps 
                  
                  
                     Perhaps, reservation of any discovery which may be
                     made of Gold deposits? though I do not see much use in
                     this.
                     
                     
                  
                  
                     The terms sketched by 
Mr Merivale would appear to be
                     reasonable enough but if the Colony should be called upon
                     to defray a portion of the Military expenditure it will
                     complain unless 
British Columbia is also made to contribute:
                     
Vancouver Island will truly say that 
British Columbia will
                     benefit as much as she does by the protection of the Military.
                     For the present I should think it would be sufficient to
                     require that the Colony keep up such barracks as may be
                     necessary for the exigencies of the service.  I suppose it
                     would not be fair nor possible to ask the Colony to erect
                     barracks.
                     
 
                  
                  
                     As for the reservation of Gold or other Mines I think
                     that to insist on the Crown's retention of them will only
                     lead to future disputes with the Legislature.
                     
                  
                  
                   
     
                  
                  
                  
                  
                     It is unnecessary to furnish any minute account of the
                     Constitution conferred upon 
British Columbia by the Act of
                     Parliament passed in 
1858
                     
                     
                        
                           
                           Act 21 and 22 Vict. C. 99 annexed.
                           
                        
                      
                     because it is well known.  The Governor and Council, or
                     Council and Assembly were made the Legislature.  As no
                     Council has been created nor Assembly summoned the Governor
                     has hitherto issued Proclamations which, on being confirmed
by
                     by 
the Queen, have the force of law. The expiry of the Act
                     of Parliament having rendered it necessary to legislate
                     afresh, opportunity is taken to make alterations in the
                     Constitution of 
British Columbia some changes having been
                     urgently prayed for by parties in the Colony.  The
                     discoveries of gold—confirmed by careful research—have
                     at once elevated 
British Columbia into a Colony of great
                     value and importance and have attracted a numerous, though
                     not a settled
population
 population.
                     
                     
                        
                           Gov. D. says 
2/April/61/ that
                           the population of 
B.C. is about 10,000 persons.  The native
                           Indians number about 20,000.
                           
 
                        
                      
                     As a revenue, which amounts
                     to upwards of £100,000 per annum, is now raised in the
                     Colony, it is natural to give to a country which promised
                     so well and performed so largely, a more liberal form of
                     Government.
                     
                     
                     
                        
                           Gov. D. reports in despt. 
10/April/63/ that
                           the yield of gold in 
B.C. (in 
/62, I presume,) is roundly
                           estimated at five million dollars or £1,041,666.
                           
 
                        
                      
                     
                     It being however considered impossible at this moment to unite
                     the two Colonies into one it has been decided to make the
                     following arrangement.
                     
                     Instead of having one Governor presiding over 
Vancouver
                        Island and
British British Columbia
 British Columbia, the two Colonies are to have
                     separate Governors, with separate Civil Establishments.
                     
                     A Legislative Council not exceeding 15 in number is created,
                     
                     
                        
                           See annexed despatch of 15 instant.
                           
                        
                      
                     which council is to consist of 1/3
rd of Public
                     Officers, 1/3
rd of Magistrates from different parts of
                     the Colony, and 1/3
rd of persons elected by the residents
                     of different electoral districts.  It is left to the Governor
                     to determine the period for which (subject to H.M's pleasure
                     which involves
a
 a practical power of dissolution) the
                     Councillors should be appointed. By this simple machinery
                     a system of virtual tho' imperfect representation is introduced
                     which will pave the way to a more complete representative Government.