"The formation of the colony of British Columbia could not have been carried on as it was but for the assistance rendered by the H. B. Co., and I considered I was acting as much for the Government as for the Company, in the services then rendered, which, being unofficial, have not been in any way recognized. The unscrupulous way in which Douglas wished to saddle all expenses on the Company, and his attempts to deprive us of the lands which he himself made over to me as Company's property, led to serious differences between him and me, and which may have caused me to be looked on with probably a hostile eye by the Government, when I was actuated by the most impartial motives, and did at the same time everything I could to help the local government in its elections and other views, where our influence was overwhelming. "Since assuming office on this side, I have been thoroughly disheartened, in the midst of very trying and difficult circumstances, between the Americans, Sioux Indians, and local disturbances on one hand, and the want of any encouragement or support by Government on the other hand. We have been not only ignored, but the worst enemies of the country have direct access to the Colonial Office, and though, probably, not attended to, are yet encouraged, from the fact of their petitions being received. No temptation would induce me to continue longer in office, even were it considered desirable that I should continue to hold my appointment, which for the good of the country I ought not. At the same time. Her Majesty's Government cannot continue much longer to ignore this territory. By such a course they are only sowing the seeds of further trouble, which I shall not be sorry to escape. "I am afraid I have let my pen run away with me; but in our isolation local matters absorb our whole energies, and we look upon the affairs of Europe, or even the fall of Charleston, as of minor importance. "Believe me, yours very truly, "A. G. DALLAS. "EDWARD WATKIN, Esq., London." The extract from the "Grit" paper, the "Nor 'Wester" was as follows:-- "THE HUDSON'S BAY TERRITORY. [_"From the 'Nor' Wester.'_] "IMPORTANT STATEMENT OF PEGOWIS, THE INDIAN CHIEF.