M Merivale
                     The mode in which 
Victoria came to be a Free Port is explained in a
                     Letter which, as we could find nothing on the subject in our
                     correspondence, 
M Berens has been so good as to write to me. I
                     annex it, having shewn it privately, at the B of Trade.
                     
 
                  
                  
                     You will not fail to notice that whilst 
Victoria is a free port 

and
                     will thereby draw to itself in time considerable trade from the
                     States, S. America, Australia, China, Japan & the Islands in the
                     Archipelago, 
New Westminster—the Capital of 
B. Columbia—is not a
                     Free Port. 
Victoria may therefore become an entrepôt
                     for the main land, as Hong Kong is for our trade with China;
                     Singapore for other places in the East; and 
S Thomas, for the Danes
                     in the W. Indies, and may end by having a great trade. I scarcely
                     suppose that except for its harbors, & Coal it will otherwise have
                     materials of internal wealth. 
B. Columbia on the other hand will
                     derive it's wealth from it's gold, its rich lands, it's forests of
                     valuable timber, & resources hitherto undeveloped. At present a free
                     port in 
B. Columbia is not demanded, &, as we want A Custom's revenue
                     there, would not be convenient to establish. But, if the two
                     Colonies should be separated, in practice, it may
                     
then be a question whether a free port on the main land may not
                     be demanded. This, however, is a matter of remoter consideration & I
                     presume that for the present 

all that is required to be done is to
                     send a copy of this Letter to the Governor of 
VanC. Is & to write
                     to the For: Office for the information as to bonding in the
                     Californian ports.