Colonial Despatches

I have the honor to forward herewith to Your Grace copy of correspondence and of an Agreement Entered into with respect to a direct steam communication between San Francisco and the Colonies of Vancouvers Island and British Columbia.

2. The disadvantages under which these Colonies were laboring through the communication even from San Francisco not being direct—or in other words, through the Steamers coming here from San Francisco ascending the Columbia River and touching at Portland en route, whereby freight became exposed to greatly increased risks, and emigration was diverted—were very clearly exhibited in the Memorial which I had the honor to forward to Your Grace in my Despatch ofthe the 25th June last, marked "Separate."

3. The recent rich gold discoveries in the District of Carriboo in British Columbia, and the large number of successful Miners who had returned from that region exhibiting their rapidly acquired wealth, and thus advertising abroad undoubted proof of the unprecedented yield of the new gold fields, rendered it morally certain that a large immigration would flow thither in the spring of 1862. It was ascertained beyond a doubt that prodigious efforts were beingmade made by the people of Portland to stop this emigration at that point, not only by artful representations of the facilities for reaching the Carriboo being greater through their Territory, but also by favourably contrasting the Diggings at the Salmon River—some new gold fields said to have been recently discovered in American territory about 500 miles from Portland. The truth or fallacy of these representations would be of but little moment. So long as every Steamer on its way to these Colonies touched at Portland, thereis is but small doubt a large proportion of the Emigration would have been checked, and the results to these Colonies would have been greatly disastrous. The fact was patent to all, and it became a matter of almost vital importance to counteract these evil influences. The Legislature of Vancouver's Island consequently voted a sum of Two thousand Five Hundred pounds (£2500) towards obtaining a direct communication from San Francisco for a few months. This sum was all that the small Reserve of this Colonycould could furnish, and even that amount was only obtainable at the sacrifice of other works of much importance. I propose to add another Two thousand Five Hundred pounds (£2500) from the Revenues of British Columbia, thus making the total sum available for the service Five Thousand pounds (£5000).

4. I trust that these proceedings may meet with the approval of Your Grace, and that you will deem the Agreement which has been concluded is assatisfactory satisfactory as could possibly have been expected. By it a weekly communication is provided for Six months, every alternate Steamer either coming direct from, or returning direct to San Francisco. Indeed had it not been that the parties entering into the contract firmly believe in the large emigration from California hitherwards, it is not likely that the small sum we have offered would have induced them to make such terms.