<P> The competing interests of the two foremost claimants were addressed in the Treaty of 1818, which sanctioned a "joint occupation", by British and Americans, of a vast "Oregon Country" (as the American side called it) that comprehended the present - day U.S. states of Oregon, Washington, and Idaho, parts of Montana and Wyoming, and the portion of what is now the Canadian province of British Columbia south of the parallel 54 ° 40 ′ north . </P> <P> During the period of joint occupation, most activity in the region outside of the activities of the indigenous people came from the fur trade, which was dominated by the British Hudson's Bay Company . Over time, some trappers began to settle down in the area and began farming, and missionaries started to arrive in the 1830s . Some settlers also began arriving in the late 1830s, and covered wagons crossed the Oregon Trail beginning in 1841 . At that time, no government existed in the Oregon Country, as no one nation held dominion over the territory . </P> <P> A group of settlers in the Willamette Valley began meeting in 1841 to discuss organizing a government for the area . These earliest documented discussions, mostly concerning forming a government, were held in an early pioneer and Native American encampment and later town known as Champoeg, Oregon . These first Champoeg Meetings eventually led to further discussions, and in 1843 the creation of the Provisional Government of Oregon . In 1846, the Oregon boundary dispute between the U.S. and Britain was settled with the signing of the Oregon Treaty . The British gained sole possession of the land north of the 49th parallel and all of Vancouver Island, with the United States receiving the territory south of that line . </P> <P> The United States federal government left their part of the region unorganized for two years until news of the Whitman massacre reached the United States Congress and helped to facilitate the organization of the region into a U.S. territory . On August 14, 1848, Congress passed the Act to Establish the Territorial Government of Oregon, which created what was officially the Territory of Oregon . The Territory of Oregon originally encompassed all of the present - day states of Idaho, Oregon and Washington, as well as those parts of present - day Montana and Wyoming west of the Continental Divide . Its southern border was the 42nd parallel north (the boundary of the Adams - Onis Treaty of 1819), and it extended north to the 49th parallel . Oregon City, Oregon, was designated as the first capital . </P>

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