I have laid before the 
Earl of Malmesbury your letter of the 
11
                  Instant, inclosing a despatch from 
Governor Douglas respecting the
               intrusion of Citizens of the United States into the 
Island of San Juan in the 
Gulf of Georgia; and I am to state to you in reply 
that
that
               His Lordship will transmit to 
Lord Lyons by the next mail a copy of
               your letter and of its inclosure and will direct him to call the
               immediate attention of the Government of the United States to the
               circumstance therein set forth, and to point out the serious
               difficulties in which the two Governments may be involved if while
               the question of boundary in that 
quarter
quarter remains unsettled, American
               Citizens should intrude themselves into any Territory which has
               hitherto been considered and treated as part of Her Majesty's
               Dominions.
               
               In the meanwhile it appears to 
Lord Malmesbury that the best course
               to be pursued by 
Governor Douglas is to continue to warn off all
               persons who may attempt to assert any rights of 
occupancy
occupancy as against
               the British Dominions in the 
Island of San Juan, and to maintain, as
               he has hitherto done, the rights of the British Crown to 
the Island,
               avoiding giving occasion to acts of violence and merely upholding
               British Possessions by the ordinary exercise of the Civil Power.