On the Union of the Colonies, (with other papers)
               
Mr Secretary Cardwell's despatch 
Vancouver Island, No. 10
               of 
2nd June 1864, came into my hands.  It contains a letter
               addressed
by
 by the Secretary of the Admiralty to the 
Vancouver
                  Island Dock Company relative to the concession of water rights
               in connection with the proposed work.
               
               2.  I learn that in addition to the proposed concession
               of water rights the Lords of the Admiralty offered to grant
               twenty thousand pounds, by way of a loan.  The present depressed
               state of the Colony renders it very difficult to raise
               sufficient money for the undertaking, but I am convinced
that
 that it
               would be true economy if Her Majesty's Government were to
               increase the amount of the loan so as to cause the work to be
               performed.  Within the short time that has elapsed since my
               return to the Colony two of Her Majesty's ships, the flag ship
               "
Sutlej" and the "
Scout" have had to proceed for repairs to
               the only dock yard available, at 
Mare Island, 
San Francisco,
               to be repaired at an enormous expense.  Two gun boats, the
               "
Grappler"
and
 and the "
Forward" are lying in 
Esquimalt Harbour
               hardly fit to go to sea.