No. 28
               
            
            
            
            
               1.  I have the honor to acknowledge the receipt of your Despatch No
               14, of the 
4th of August, communicating the arrival of my Despatch No
               10, of the 
16th of April last, in which was reported the discovery of
               Gold within the British Territory, in the Upper 
Columbia River district.
               
 
            
            
               2.  I have since the date of that 
letter
letter, received several other
               communications from my correspondent, in that part of the country, who
               however scarcely makes any allusion to the subject of the Gold
               discovery, but I have heard through other almost equally reliable
               sources of information, that the number of persons engaged in gold
               digging is yet extremely limited, in consequence of the threatening
               attitude of the Native Tribes, who being hostile to the Americans have
               uniformly opposed the entrance of American citizens into their country.
               
 
            
            
               3.  The people from 
American Oregon are therefore excluded from the
               Gold District, except such, as resorting to the artifice of denying
               their country, succeed in passing for British 
Subjects
Subjects.  The persons at
               present engaged in the search of Gold, are chiefly of British origin and
               retired servants of the Hudson's Bay Company, who being well acquainted
               with the Natives, and connected by old acquaintanceship and the ties of
               friendship, are more disposed to aid and assist each other in their
               common pursuits, than to commit injuries against persons or property.
               
 
            
            
               4.  They appear to pursue their toilsome occupation in peace and
               without molestation from the Natives, and there is no reason to suppose
               that any criminal act, has been lately committed in that part of the
               country, nor indeed do I apprehend any difficulty in preserving order
               among those men, so long as the heterogeneous population of 
American
                  Oregon are 
excluded
excluded from the gold district.
               
 
            
            
               5.  It is reported that gold is found in considerable quantities
               and that several persons have accumulated large sums by their labour and
               traffic, but I cannot vouch for the accuracy of those reports, though on
               the other hand, there is no reason to discredit them, as about 220
               ounces of Gold dust, has been brought to 
Vancouver's Island direct from
               the Upper 
Columbia, a proof that the country is at least auriferous.
               From the successful result of experiments made in washing gold from the
               sands of the tributary streams of 
Frasers River, there is reason to
               suppose that the gold region is extensive and I entertain sanguine hopes
               that future 
researches
researches will develop stores of wealth, perhaps equal to
               the gold fields of California.
               
 
            
            
               The geological formations observed in the "Sierra Nevada" of
               California, being similar in character to the structure of the
               corresponding range of mountains in this latitude, it is not
               unreasonable to suppose that the resemblance will be found to include,
               auriferous deposits.
               
               
            
            
               6.  I shall not fail to furnish you with full and regular accounts
               of every event of interest, connected with the gold district, which may
               from time to time occur.
               
            
            
               I have the honor to be Sir
               
               Your most obedient humble Servant
               
               
James Douglas
               
               Governor
               
               
               
               
 
            The Right 
Honble Henry Labouchere Esq
re
               
               Her Majesty's principal Secretary of State
               
               For the Colonial Department.
 
            
            
            
            
            
            
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