Mr Elliot
                           In 
1859, it was determined after corres
ce between the Adm
ty
                           B
d of
                           T
de, Treasury, 
Govr Douglas, and this office, that two lighthouses
                           should be erected in the 
straits of Fucas at a cost of £7000.  Half
                           of this sum to be paid from Imperial Funds, the other half to be
                           borne jointly

 by 
Vancouver Island and 
British Columbia.  Those
                           colonies were to bear the expense of maintaining the Lighthouses when
                           once established.
                           
 
                        
                        
                           The usual course has been to request the Agents to pay to the Board of
                           Trade such expenses as may have been incurred by their L
ps in
                           procuring stores for these Lighthouses.  See B
d of T
de 6296/
65
                           herewith.  But the Agents tell me that not only has the 
V.I. Govt
                           overdrawn their account some £400, but they have as yet made no
                           provision for the Interest and Sinking Fund Account 
wh will become
                           due on its Loan in 
July next.  Still the B
d of T
de will (I am told
                           privately) [one word off microfilm] no question of immediate payment,
                           as they will

 in the first place, pay the cost of these stores out of
                           the Vote for Lighthouses abroad.