No. 12
               
            
            
               
               
                     Downing Street
                     
                  
               22d October 1853
               
               Sir,
                
            
            
               I have received your Despatch of the 
9th December last in which
               you submit three questions of considerable importance, the first
               relative to the Sovereignty of certain 
Islands in the Arro Archipelago,
               the second respecting the encroachment of the

 Americans on the British
               fishing grounds on the West Coast of 
Van Couver's Island, and the third
               relative to the Trade carried on by the Americans with the Indians of
               
that Island.
               
               1
st  As you have promised a further report upon the first of
               these topics I must postpone the consideration of it until that report
               arrives; but I must request you to send me the information of which you
               are in possession with as little delay as possible.  In the

 meanwhile I
               wish to observe to you that a disputed question of Sovereignty over
               distant Countries is a matter of such delicacy and importance that it can
               only be dealt with on the most accurate representation of
               facts.  Whatever information therefore you are able to supply me with, I
               must impress upon you the necessity of satisfying yourself that it is
               derived from substantial and trustworthy sources.  I perceive you state
               that it was your intention to assert the Sovereignty of

 Great Britain to
               all 
the Islands in the 
Canal de Arro situated to the Eastward of
               
Strawberry Bay.  I shall wish to be informed how this assertion of the
               Sovereignty of this Country over these Islands has been met by the
               Americans, and also what steps they have taken to support the claim they
               have set up on the part of the United States.
               
               2
ndly  As regards the alleged encroachments of the Americans on
               the fishing grounds it is unquestionable that no

 foreigners are legally
               entitled to fish upon or within three Miles of the Coasts of 
Van
                  Couver's Island, and that they may be interrupted and compelled to depart
               if they persist in doing so.  But upon this point also I am obliged to
               ask you for more definite information.  I should wish to know for what
               length of time the Americans have been fishing on the Coasts in Question,
               and in what situations, and whether, as you state that you have called
               upon the Commanders

 of the Vessels of War lately on the Coast to arrest
               their encroachments, those Officers have succeeded in doing so.
               
               3
rdly  With regard to the third subject the traffic of the
               Americans with Indians you are of course aware that the Hudson's Bay
               Company are legally entitled to this trade to the exclusion of all other
               persons whether British or Foreign.  You are therefore clearly at
               liberty to take such steps as may have the effect of

 punishing persons
               who infringe their rights.  But I am of opinion that it would be prudent
               previously to issue a proclamation warning all persons against the
               consequences of such an infringement of the Hudson's Bay Company's
               rights, and also apprizing foreigners that they are precluded from
               fishing within three Miles of the Shore.
               
               I have the honor to be Sir,
               
               Your Most obedient Humble Servant
               
               
Newcastle