No. 1
Downing Street
12 July 1859
Sir,
I have to acknowledge your despatch No. 17 of the 14th of May last, transmitting for the information of Her Majesty's Government, copies of your Correspondence with the House of Assembly of VancouversManuscript imageVancouvers Island up to the 7th of May last.
From your message of the 7th respecting the erection of certain buildings required for the public offices of the Colony, it would seem that you informed the House of Assembly that the people of the Island were not to defray the cost of these buildings, and that the AgentManuscript imageAgent of the Hudsons Bay Company had agreed to defray the whole of the expense.
I am at a loss to understand the ground of these proceedings. Both you and the Agent of the Hudsons Bay Company have been fully aware that the license to the Company was about to terminate on the 19th of May: that on that event Her Majesty's Government had the power to repurchase theManuscript imagethe Island "in consideration of sums expended by the Company and the value of their establishment:" and you were directed by Mr Labouchere, as long ago as February 1856, to send home in anticipation of that event, the necessary accounts of what was due.
The Company were warned in January 1858, that this power of repurchase would be exercised: and there has beenManuscript imagebeen since a long correspondence, not yet terminated, between Her Majesty's Government and the Company as to the adjustment of accounts.
You cannot therefore have expected when incurring this expense on the very eve of the termination of the license, that any portion of the expense would be ultimately defrayed by Her Majesty's Government; and ifManuscript imageif there has been any mistake on this point, I must direct you to cease at once all farther expenditure on these buildings or other public works except such as may be incurred with the consent of the Legislature of Vancouvers Island.
I send you copy of the letter which I have caused to be addressed on thisManuscript imagethis subject to the Governor of the Company.
I have the honor to be Sir
Your obedient servant
Newcastle

Documents enclosed with the main document (not transcribed)
Manuscript image
H.H. Berens, Hudson's Bay Company, 12 July 1859, rejecting the implication from Douglas that the HBC would pay for construction of public buildings, which he was building "without the sanction of the Assembly."
Pelham-Clinton, 5th Duke of Newcastle Henry Pelham Fiennes to Douglas, Sir James 12 July 1859, LAC :, 1. The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.0, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/V597101.html.

Last modified: 2020-03-30 13:22:16 -0700 (Mon, 30 Mar 2020) (SVN revision: 4193)