It is, I think, quite fair that any indemnity which may be
due to the H.B.C for Land in
B. Columbia or
Vanc Island
should be paid out of the Revenues of those Colonies
respectively—the only difficulty would be as to the time of
payment. The Colonial Revenues
w I presume be insufficient
for several years to pay the indemnity—and the C if ousted
of their Land would probably object to wait. If
the Treasury
would not advance the money as I suppose with New Zealand's
experience before their eyes they would refuse to do, the
only alternative would be to give the C a lien on the Land
Revenues of the
Colonies & pay them interest in the meantime.
My belief is that the C will not be able to make out a
legal title to the Land in either Colony—but that they
will make out a strong case for equitable consideration in
Vanc Isl. But a case for equitable consideration can be
of course settled at the convenience to a certain extent at the
discretion of the
Gov and need not therefore cause
any embarrassment.
I am afraid unless you take some immediate step all the
Water frontage in
Victoria will be sold. Is it prudent to
wait the issue of the proceedings before the Judicial
Comm which will probably last some months?