Colonial Despatches

I am directed by the Lords of the Committee of Privy Council for Trade to acknowledge the receipt of your letter of the 23d August Instant transmitting for their information, by direction of the Duke of Newcastle, a copy of a letter from the Foreign Department on the subject of the bonding system in the Californian Ports, with respect to which My Lords suggested in their letter of the 12th July last that an enquiry should be made.

It appears from this letter thatthat Mr Booker the British Consul at San Francisco has reported to Lord John Russell that the bonding system does exist in those Ports, the Importer being, however, obliged to enter into bonds for the payment of the Import Duty, or for the Export of the goods within three years.

My Lords are unable to reconcile this statement with that contained in the 6th paragraph of Governor Douglas's Despatch of the 23d March last transmitted to this Department in Mr Fortescue's letter of the 28th June which is to the effect that goods imported into Vancouver's Island from thethe Californian Ports are necessarily burdened with the Customs and Municipal duties levied in California, forming a charge of nearly 30 per cent on their first cost.

I am therefore to request that you will suggest to the Duke of Newcastle that Mr Hammond's letter should be referred to Governor Douglas with a view to obtain an explanation of the apparent discrepancy in the two statements to which I have adverted.