Colonial Despatches

I referred for the consideration of the Lords Commissioners of the Treasury your despatches of the numbers and dates noted in the margin relating to the conveyance of mails between this country and B. Columbia and I transmit to you for your information a copy of the reply forwarding a copy of a report which has been furnished to their Lordships on the subject by the Postmaster General, fromwhich which you will see that it is not considered advisable on Postal grounds to incur on the part of the Imperial Government the considerable expenditure which the establishment of a subsidized line of British Packets between Panama and B. Columbia would involve.

You will see however that the Postmaster General has written to the Postmaster General of the United States requesting to be informed whether some arrangement cannot be made for the transmission of the British Mails by the Steamers which it is understood have lately been established under contract with the AmericanGovernment Government between San Francisco and the ports North of it.

I take this opportunity of conveying to you my approval of the contract which you have entered into with an American Steam Packet Company for the temporary conveyance of the Mails between San Francisco and Victoria every twenty days, reported in your Despatch No. 71 of the 24th of April.