Colonial Despatches

Mr Elliot
The previous correspondence is not in the Division.

See separate minute.

This is rather an unpleasant case.

British Columbia used to have an account current with this Country in respect of the disbursements for the Royal Engineers, paying the money to the men there, and receiving repayment from the Treasury in England.

In February 1862, the Governor having estimated the total annual cost of the Royal Engineers at £22,000, the Secretary of State announced that the Colony would for the future be called upon to defray one moiety of that estimated expense, vizt £11,000, and that the other moiety would be paid from Imperial funds. But it was explained that £3800 werealready already borne on the Army Estimates for the Regimental pay of the Engineers, so that only the balances of £7,200 would be placed on a Parliamentary Estimates which then existed for British Columbia.

In Novr 1865, the Governor sent home an account extending from 1859 to 1863 which purported to show that the Treasury was in debt to the Colony to the extent of £9021.

In May 1866 the Treasury acknowledged the correctness of the account and promised payment.

But in a letter of 22 Decr 1866, the Treasury represent that it made the admission in error. It says that the Colonial Authorities have neglected to take into their account theRegimental Regimental pay defrayed out of Army Estimates and also certain Colonial pay to Coll Moody paid to him by the Treasury. This gives the following items in favor of the Imperial Government:

Regimental Pay in 1862	£4,597.1.5
Do       Do    1863	£3,625.0.7
Coll Moody's Pay in 1862	£1,200.0.0
Do       to 14 Novr, 1863 (say)	£1,050.0.0
	£10,472.2.0

This is more than the amount which previously appeared to be due from this Country. The Treasury state however that they are unwilling altogether to revoke their previous admission, and that having already paid to the Crown Agents £6714, they will not reclaim it, but consider that no further issue should be made.

The Governor in the meanwhile has written to ask when the money will be paid.

In the main the Treasury now appears to be correct, and I suppose that it should be sent to the Governor for his information.

But I may observe that there appears to me a slip in one part of the Treasury letter. They say that the greater portion of the claim of the Colony arises in respect of the expenses of the Engineers in 1862-63. This seems to me a mistake. The counter-claim of the Treasury arises in respect of those expenses; but an inspection of the account sent from the Colony in 1865 will showthat that they made out a Deficiency in the Imperial payments of about £7000 in 1861 and of only £3000 in the years 1862 and 1863. Perhaps this might be privately mentioned to the Treasury, in order that unless they have some reason to the contrary which has escaped us, they may be able to amend their letter accordingly.

Duke of Buckingham
I suppose with Mr Elliot the Treasury should be asked to revise their letter; & then the Govr should be informed. But it is unsatisfactory as he is, under an erroneous impression, raising money at 12 per cent.

I do not see any other course in the unsatisfactory state of the accounts—the sooner it is closed the better.

Robert Ker, Auditor General, to Colonial Secretary, 11 January 1867, reporting non-receipt of funds.

Colonial Office to Secretary to the Treasury, 21 March 1867, forwarding copy of the despatch for information.

Draft reply, Buckingham to Seymour, No. 9, 21 March 1867.