343 N America
               
               
               
                     British Museum
                     
                  
               Feby 14. 1848.
               
               
               Dear Sir,
                
            
            
            With reference to the conversation I held with you on the 
12th
                  instant, I have the honor to submit the following observations; and to request that you will
               bring them under 
Lord Greys notice, at your Earliest Convenience.
               The 
Govt of the United States of America has entered into a
               contract with a commerical house in 
New York, by which the latter
               undertakes to convey the Mails, for a period of ten years, by means of
               Steam Vessels, between 
Panama and the 
Columbia River, and the
               intermediate ports of P
t S
t Blas, 
               
Mazetalan, Acapulco, San
               Francisco, Monterey, &c. There are three steamers of 1000 tons each now
               building at 
New York for the purpose, and it is said they are to be
               completed in December next. In order to perform this contract a supply
               of 20,000 tons of Coal will be required, yearly. The 
New York company
               offer to contract with an English House for this supply of coal to be
               sent from England.
The Pacific Steam Navigation Company

 have two Steamers continually running from 
Valparaiso to 
Panama; touching at all intermediate ports.
               It is said this Company is willing to contract for a supply of 2000 Tons
               of Coal annually, to be landed at 
Panama. Moreover, the supply of coal
               required by her Majesties Steamers in the Pacific Ocean, will 
it is
               probable, continually increase.
It is obvious that all this coal could be supplied at a far
               lower cost from 
Vancouvers Island than from England.
It is necessary however, in the first place to know upon
               what terms her Majesties Govt will grant the right of working the
               coal.
            
            
            In the second place; it will be obvious to 
Lord Grey, that an
               undertaking Such as

 that contemplated will involve the necessity of
               transporting a large population of English to 
Vancouvers Island. The
               number of Seamen alone will be considerable, and the population
               necessary to produce food for their subsistence must also be numerous:
               besides it is probable that any depot for shipping in this situation
               would attract considerable numbers of whale ships to 
the Island. It is
               plain, then, that, in the event of the proposed Company being formed,
               
Vancouvers Island will become the resort of a 
considerable number of Her
               Majesties subjects; and that it will be essential to the comfort and
               convenience of the population, and to the Security of the speculation,
               that a Government should be established on 
the Island contemporaneously with the first formation of the Colony. It will therefore be very
               desirable to know 
Lord Greys views on this point.
Lastly, apart from the profit to be gained by working the
               coal, of which, from the Statements here given, there seems to be a
               reasonable prospect, 
Lord Grey is aware that there are various reasons
               why a colony in that Part of British America is desirable. I shall not
               trouble you with any remarks on this head, as I have fully stated the
               case in a letter to 
Mr Hawes dated 
11. June 1847. It is a matter for
               his Lordships

 consideration whether the establishment of a colony could not be most readily effected
               through the agency of such a company as
               that now proposed &. whether (referring to my letter of 
11. June) it would
               not be wise to grant the whole 
Island to such a company binding them by
               their charter to effect the colonization in a certain Manner
 
            
            
            I am not able at present to state who will be the principal parties
               in forming this company. When the time shall arise I hope such names
               will appear as shall place the scheme above the risk of failure.
            
            
            The possibility of forming a company at all will, however, depend
               on the view 
Lord Grey may take of the above questions
               Minutes by CO staff
               
               
                  
                     Mr Merivale.
                     
                     This Letter contains suggestions for the working of the Coal at
                     
Vancouver's Island through the instrumentality of a Company which has to
                     be established, and submits the expediency of establishing a 
Govt
                     over 
that Island. I annex 
Mr Fitzgerald's former Letter — & the answer
                     returned to it, which will enable you to form an opinion on the
                     proposals.
 
                  
                  
                  
                   
               
               
               
                  
                  
                     Mr Blackwood
                     Will you be so good 
as annex also the papers relative to the
                     negociation with the Hudson's Bay Co. as to 
Vancouver's Island which I had the other day; if they are returned to your department
 
                  
                  
                  
                   
               
               
               
                  
                  
                     The papers in question have just been sent back to me & I annex them.
                     
                  
                  
                   
               
               
               
                   
                  
                  
                  
                     
                     
                     Mr Hawes 
                     
                     This is a renewal of an application made by 
Mr
                        Fitzgerald to you some months ago. The circumstances which his letter
                     discloses respecting the possible use to which the discovery of coal may
                     be turned are corroborated by M
r Cunard's recent application on the same subject, & may seem to deserve consideration. But
                     you will see
                     
Mr Fitzgerald is anxious to draw from 
Lord Grey some general
                     indication of his Lordship's views about the colonization of 
Vancouver's Island, 
before he

 communicates on his part the names & characters
                     of the gentlemen with whom he proposes to associate himself & the details
                     of their scheme — 
land I have not experience enough in negociations of this
                     description to suggest whether any such indication as he requires should
                     be afforded or not.
                     
 
                  
                  
                     You will see also by 259 N. America that according to 
Mr
                        Blackwood's Minutes we are

 still awaiting some renewal of the proposals
                     made by the Hudson's Bay Company. You will remember that their
                     
first proposal was with reference to this very 
island & the adjoining
                     Coast: that the consideration of it was adjourned for a legal opinion,
                     whether they could take grants of land West of the 
Rocky Mountains or
                     not: That the law advisers thought they could: that the negociations
                     are consequently renewed: that
 Sir H. Pelly
 Sir H. Pelly then made a proposal which
                     was rejected as far exceeding the bounds of any grant which the Crown
                     would be disposed to make: & that he promised to renew the application
                     for a more limited tract of land. Whenever he does make another
                     application, it will probably embrace 
Vancouver's Island. And perhaps considering the applications which are made & likely to be made in other
                     quarters 
Sir H Pelly may be reminded that this matter has awaited his
                     further moving since the 
25th of last March?
 
               
               
               
                   
                  
                  
                  Mr Fitzgerald I think singularly qualified to take an active
                     part in such an

 enterprise. He is energetic & enthusiastic, a quality most valuable in an undertaking
                     of this kind.
 
                  
                  
                  Having a sanction from 
Ld Grey, I have no doubt he would endeavour
                     to form an association for the purpose.
I hardly think however that more can be said in reply, than that 
Ld
                        Grey
 will be ready to consider any practical plan, supported by parties
                     of respectability & sufficient means to make success probable, which
                     
Mr Fitzgerald can lay before his Lordship.
I agree with 
Mr Merivale that the Hudsons Bay 
Cy should be
                     reminded of his intention to submit a

 plan.
But I think that plan will be based upon some advantage to the H.B.
                     Comp
y. I think however their cooperation may be of advantage & as I have I think said before,
                     there is I believe a Company already formed,
                     having Capital, the Pugets Sound Company (?) so I 
am opinion that
                     
Mr Fitzgerald might usefully be referred to 
Sir J. Pelly.
I shd be disposed to give a good Municipal Charter or
                     Constitution to the Settlers & let them manage for themselves.
                   
               
               
               
                
            
            
            
            
            
               Other documents included in the file
                
               
               
               
                  
                  
                     Draft, Colonial Office to 
Fitzgerald, 
24 February 1848, advising 
Grey would be prepared to consider any plan submitted upon receipt of more detailed information.
                     
                     Minutes by CO staff
                     
                      
                        
                        I am very anxious that this Coal 
shd be worked, & therefore
                           though this letter is quite right as an official answer to the
                           applicat
n, it 
wd I think be advantageous that 
Mr Hawes shd 
                           or 
Mr Merivale shd see 
Mr Fitzgerald upon the subject
                           & that he 
shd be put in 
communicatn with 
Sir John Pelly. —
 
                   
               
               
               
               
                
            
            
            
            
            
            
            
            
            
               
               
                  People in this document
                  
                        Blackwood, Arthur Johnstone
                  
                        Cunard, Sir Samuel
                        
                  
                        FitzGerald,  James Edward
                        
                  
                        Gordon, Commander George Thomas
                        
                  
                        Grey, Third Earl,  Henry George 
                  
                        Hawes, Benjamin
                  
                        Higgins, William Frederick
                  Merivale, Herman
                  
                        Pelly, Sir John Henry
                        
                  
                        Seymour, Sir George  Francis
                
               
                  Vessels in this document
                  HMS Cormorant, 1842-1853
                
               
                  Places in this document
                  Columbia River
                  New York
                  Panama
                  The Rocky Mountains
                  Valparaiso
                  Vancouver Island