 
                  
                  M Elliot
                     On the 
28 ult this Office announced the proposed Suit to
                     
the Treasury. 
The Treasury have not directly ans our
                     Letter, but on the 
4 inst their Solicitor wrote here for
                     instructions for his guidance. The Council Office now say
                     that the matter in debate involving a money question must
                     have the expressed concurrence of 
the Treasury before the
                     Judicial Committee can entertain the subject. I presume
                     we must ac
c write to 
the Treasury in the sense pointed
                     out in this Letter; but to enable 
the Treasury to judge
                     fully the point submitted to their consideration I think we
                     must borrow from the Council Office the Petitions lodged
                     there by the Hudsons's Bay C, in elucidation of their
                     claims & send them to the T-y.
                     
 
                  
                  
                  
                  
                  M Fortescue
                     I should doubt whether it is necessary for us to obtain
                     copies of the Hudson Bay Company's Petitions for the purpose
                     of sending them to 
the Treasury, inasmuch as their substance
                     is stated in the present letter. What is wanted seems to me
                     something more material and more difficult to supply. The
                     Council desire to be informed whether 
the Treasury will be
                     ready to give effect to any recommendations of the Judicial
                     Committee for a pecuniary indemnity from the Government. In
                     order to enable 
the Treasury to determine that point it would
                     seem as if they would be entitled to expect from us some
                     statement of the nature of the questions at issue with the
                     Company, and of the kind and possible extent, so far as can
                     now be perceived, of the pecuniary claims that might be
                     established against the Government if the Company's views
                     prevail. This would entail the preparation of a well drawn
                     and careful letter from this Office to 
the Treasury.
                     
 
                  
                  
                   
               
                
                  
                  
                     M Fortescue
                     I apprehend that a pecuniary question, as well as
                     a question of title is raised by the reference of the
                     H.B. C claim to the Jud Comm. By 
Gov
                        Douglas' Despatch of 
31 May 1859 No 161 you will see
                     that a considerable portion of the Land claimed by
                     the H.B.C had been sold to settlers in 
B. Columbia,
                     and more had been promised.
                     

                     If therefore the C make
                     out their title to more Land, they must be indemnified
                     or the purchasers ousted. I apprehend that the latter
                     will be impossible.
                     
 
                  
                  
                     I am afraid it will be very difficult to give the
                     Treasury even an approximate Estimate of the amount of
                     indemnity that might be required. But possibly 
M
                        Pemberton the Surveyor 
Gen if still
                     

                     in this Country
                     might help you.
                     
 
                  
                  
                     M Fortescue
                     I was unable to see 
M Reeve today till after you had
                     gone to the House of Commons.
                     
 
                  
                  
                     He pointed out that the Petitions of the 
Hudson's Bay C
                     raise not only the question of Title but the question of
                     their claim to pecuniary indemnity in 
Vancouver Island
                     for their general expenditure and in 
British Columbia
                     for their Land sold by the Governor—that the letter
                     from the 
Colonial Office of 
4 July being in general
                     terms involved the reference of the whole of these questions
                     to the Judicial Committee—but that the Secretary of State
                     may limit that reference to the single question of Title, if
                     he desires to do so. The best course would probably be to
                     

                     explain, in answer to the letter of 
9 instant, that it
                     was not the intention of the 
Duke of Newcastle to refer to
                     the Judicial Committee any question as to the amount of
                     compensation to be awarded under certain circumstances to
                     the 
Hudsons Bay Company, but only the question whether the
                     Company could make out such a Title to be considered
                     the owners of the Lands which they claim—as would entitle
                     them either to be left in possession of those Lands or, if
                     dispossessed, to be indemnified for the loss. I understood
                     
M Reeve that the Judicial Committee would willingly
                     avoid any question of compensation.
                     
                     But as the decision of Title if adverse to the Crown
                     would necessarily involve the question of compensation
                     
 M Reeve
                     M Reeve suggested that a Communication on the subject
                     should be made to 
the Treasury. This I suppose there
                     would be no difficulty in doing, although the amount of
                     possible compensation cannot be precisely stated.
                     
                     M Reeve further said that the case cannot be heard
                     before the Judicial Committee till December at the earliest
                     but that it would be desirable to have the reference made
                     at the Council to be held before 
the Queen goes to Scotland.
                     He is to send me copies of the Company's Petitions and if
                     it would be a convenience to you I would, as I am probably
                     more familiar with the case than anyone in the North
                     American Department, draft the letters for your consideration.
                     
 
                  
                  
                     I may observe in conclusion that the petition
                     respecting Van
                     
Van
                        
                      Couvers Island
                     Couvers Island
                     Couvers Island reopens the whole question of
                     the amount to be repaid on the repurchase of 
the Island by
                     the Crown, which the 
Colonial Office refused last year to
                     refer to 
Sir J. Coleridge. I suppose no part of the
                     compensation the Company had agreed to accept has been paid
                     to them, & hence the question reappears in a new form.
                     
 
                  
                  
                     M Murdoch
                     On the contrary (as to your last sentence) £25000 has just
                     been paid to the H.B.Co. on account of the repurchase of 
V.
                        I. I had not seen the Petition & had no idea of 
that
                     question being re-opened, wh. was never intended.
                     
 
                  
                  
                     I shall be much obliged, if you will draft the letters, as you
                     propose.