With the Royal Navy's approval and a leave of absence he was first given command of a two-vessel fur trading expedition to the Pacific Northwest coast, Hawaii, and China.

[7] Both companies were exploring the possibilities of collecting sea otter pelts along the Pacific Northwest coast, via trade with the indigenous peoples, and selling the goods in China.

The idea had its origins in Cook's third voyage, during which sea otter pelts obtained along the northwest coast of America, from Nootka Sound northwards, were sold for high prices and great profit in Canton.

[11] Although his primary focus was collecting sea otter pelts, Colnett explored the complex coastline in detail, apparently in hopes of finding the fabled Northwest Passage.

During the time of Colnett's first voyage two other British ships, owned by John Meares and his partners, were trading on the North West coast.

The goal of the joint venture was not just to send vessels to the North West coast but also to set up a permanent trading post at Nootka Sound, to be named Fort Pitt.

Meares, one of the primary forces behind the venture, hoped that a permanent post at Nootka Sound would establish his own dominance in the lucrative marine fur trade.

One of the first serious threats to the Spanish claim came from the extension of Russian fur trading activity from Siberia to Alaska during the middle and later parts of the 18th century.

Spain reacted not only by expanding the foothold already gained in Alta California but also by launching a series of exploration and reconnaissance voyages from San Blas, Mexico, to Alaska.

The purpose of these voyages was not only to ascertain the Russian threat but to reinforce their claims of sovereignty by right of first-discovery and through the use of formal possession-taking rituals, which were still regarded as a meaningful part of international law.

Another purpose was to search for a possible Northwest Passage, which, if it existed and fell under the control of another nation such as Britain, could prove disastrous to New Spain's Pacific coast.

Detailed information about Russian activities in Alaska was acquired in 1788, including ominous indications that Russia might seize control of Nootka Sound.

This, in addition to the rapidly increasing numbers of fur traders working the Pacific Northwest coast—mainly British but also American and others—coupled with Spain's firm claim of sovereignty north to 61°N latitude (the vicinity of Prince William Sound, Alaska), and the lack of any Spanish outpost north of California, made it imperative that a firm stand be taken.

It was perhaps not the best port of the region, but it was well known and well charted, fairly easy to reach, and usefully located at a general base of operations and a place of rendezvous.

Factors such as these resulted in Russia, Britain, and Spain all deciding to build a fort there, in order to solidify their claims and interests.

Implicit in such a plan was the restriction of free trade by other nations, a policy the Spanish had long enforced within the lands of the empire.

[14] The position of the British government, since the days of Queen Elizabeth, had been that its subjects had the right to navigate the ocean and visit, trade, and make settlements anywhere not already occupied by a civilized nation.

[15] In 1789 a Spanish expedition under Estebàn José Martínez set sail from San Blas in order to occupy Nootka Sound.

Two American fur trading ships were already anchored in the sound, one of which was the Columbia Rediviva, and more arrived later, including the Lady Washington, under Robert Gray.

Not only was the Argonaut carrying material and supplies obviously intended for the construction of a permanent base, but a group of Chinese laborers were also on board, one of the first examples of "coolie" labour in the Pacific Northwest.

[16] After a complicated series of events, Martínez ended up with three captured ships and their crews, including the Argonaut, Princess Royal, and North West America.

The Chinese workers were forced to help build Fort San Miguel, a small battery of Spanish cannon overlooking the entrance to Friendly Cove, the main harbour of Nootka Sound at the time.

[clarification needed] The British ships captured by Martínez, along with Colnett and his crew, still prisoners, were taken to the Spanish naval base at San Blas, Mexico.

In Britain, King George III and Prime Minister William Pitt soon learned what had happened to the British ships, officers, and crews.

France, a Spanish ally, was coping with the early stages of the French Revolution and would not be able to fight for Spain in an armed conflict.

Without the French, Spain could not realistically secure their massive North and South American territories in the event of war with Britain.

[20] After the initial crisis at Nootka Sound, James Colnett was taken to San Blas, New Spain, and kept under Spanish custody until released in May 1790.

[2] His period of command was short-lived, Hussar was wrecked off the coast of Brittany and Colnett was captured and imprisoned for six months by the French.

[2] After his release he tried to convince the Royal Navy to launch a surprise attack against Spain's poorly defended Pacific coast.

Before departing Sydney, Colnett unsuccessfully petitioned Governor Philip Gidley King for a free pardon for one of the female convicts, so that she might share his cabin for the return voyage to England.