Colonial Despatches

I have to acknowledge your letter of 14th instant, enclosing a Despatch from the Governor of British Columbia, on the subject of the arrangement to be made with the Hudson's Bay Co for the settlement of their claims to land in that Colony.

2. Governor Douglas suggests, that in any arrangement that may be come to a proviso should be inserted, that if any Land which has been alienated by the Government should be adjudged to have been the property of the Co compensation for it should be given by an equivalent in Land elsewhere. I apprehend that the only question which will be submitted to the Judicial Committee of the Privy Council & on which they will give a decision, will be the legal title of the Company to Land in British Columbia by reason of occupation or other circumstances—but that the question as to the particular lands to which they may be entitled, if any—and, if their Title is established, as to the compensation to be given for any that may have been alienated, will have to be settled subsequently between the Executive Government and the Company. It would be impossible under these circumstances to insert the proviso which Governor Douglas recommends—but he might be informed that the point will not be lost sight of when the proper time arrives for considering it.