3. The letter of 
M Berens is a fair narration of some of the
               circumstances concurrent with the erection of the Buildings and the
               appropriation of the land, and the facts stated are substantially
               correct, but I do 
not
not see that he throws any fresh light upon the
               claim the Fur Trade branch of the Company have made, or that he in
               any way strengthens their position. On the contrary I think his
               letter contains clear evidence that the Fur Trade have neither a
               legal nor an equitable title to the land in question. Had the
               Company adopted my proposition in the first instance, made as their
               Agent, of
               
leasing to the Colony the Buildings required by the
               Government, the matter might wear a different complexion; 
although
although
               even then I am not sure that such an arrangement could have been
               confirmed under the Charter of grant of the
               
whole Island to the company, which expressly restricted the sale
               of lands to such as were
               
not required for 
public purposes—such public purposes I take
               it to mean lands required for purposes in connection with the
               Government of the Colony; but the company did
               
not approve of my suggeston and the cost of the buildings was in
               consequence borne by the Colony, and the 
Land
Land appropriated to them
               was retained and
               
set apart as a Government reserve up to the period of its sale
               under the authority of the Despatch to 
Governor Blanshard from the
               Secretary of the Company dated 
1 January 1851, which provides that
               the Buildings required for Government purposes are to
               
"be near the Fort Victoria for convenience and protection"
               and also that the
               
2
               "lands which may be appropriated with the Buildings are to be
               held by the Governor and Council as Trustees for the Colony."
               These two points 
which
which I brought forward in my Despatch of the 
28
                  March, to my mind conclusively settle the question, and the more so
               as I notice that they are not touched upon by 
M Berens. To have
               adopted the expedient alluded to by 
M Berens
               
               
               
                  
                     
                     Vide Page 2 of 
HBC letter 6405.
                     
 
               
               of the Fur Trade retaining the Buildings, and other Buildings being
               erected upon a different site not claimed by the Fur Trade, would
               have been simply absurd; for that would have necessitated the removal
               of the Government Buildings from the Settlement altogether, 
and
and would
               have placed them in the then almost untrodden wilderness. But in the
               quotation used by 
M BerensM from the letter of 
Sir J.H. Pelly, it
               would appear that in
               
all cases
               of Reserves of land if
               
any part was required for public purposes, it might be resumed
               upon
               
repaying the price and 
any improvements that might have been
               made upon it. For better information I enclose a copy of the whole
               of that letter, which I should not have done from motives of 
delicacy
delicacy
               the word
               
"private" being marked upon it, but as 
M Berens has alluded to
               it as an official document, which in point of fact it is—and as some
               most material points can be gathered from it, I do not longer
               hesitate to produce it. That letter, in my opinion, clearly
               establishes the point that if
               
any portion of land
               
reserved for the 
Fur Trade, or 
Puget Sound Company,
               were required for
               
public purposes, it might be 
resumed upon two conditions,
               first, repayment of its
               
original cost cost
cost, and secondly, compensation being made for any
               improvements upon it; but in the case under discussion, no repayment
               of the original price of the land was required, the Fur Trade having
               paid nothing for it
               
then, (nor have they, I believe, up to this day, made any
               payment for the 3084 Acres claimed by them), and no compensation was
               necessary, no expenditure having been made in improvements.
               
               6. There is however one further point which is somewhat material.
               
M Berens mentions in the last paragraph but one of his letter that
               the Fur Trade claim of 3084 Acres was entered in the land Register as
               belonging to the Company. I have referred to the Register, and I
               find therein a Memorandum signed by the Secretary of the Hudsons Bay
               Company and dated 
7 January 1859, containing a copy of a minute of resolution made on the 
                  26 September 1853 (nearly 3 years after the portion of land now claimed by the Fur Trade was
               
in in possession
in possession of the Government) that the 3084 Acres should be
               entered as belonging
               
to the Company. A Form of Title Deed was also filled in and
               sent home, but it would seem never to have been executed.
               
               7. Considering that some legal points were involved in the question,
               I placed the whole of the papers before the Attorney General, and I
               forward herewith his opinion for Your Graces information.