Sir F. Rogers
                     In a despatch dated 
26 Oct 1866 the 
Gov of 
Vancouver Island
                     called attention to three points arising out of the reconveyance of
                     that Island to the Crown by the Hudson Bay 
C.
                     .off 1. the sale of a portion of 
Beacon Hill Park.
                     .off 2. Sale of a portion of the foreshore on the South side of 
James
                        Bay.
                     .off 3. Sale of the herein mentioned lot Z.
                     .off end
                     
 
                  
                  
                     As regards the 1 the land on 
Beacon Hill the L & E Com,
                     to whom the Gov despatch was referred, recommended that the
                     Company should be requested to refund the amount they 
rec
                     for the Land.
                     
 
                  
                  
                     2 as regards the foreshore sale they were of opinion
                     that the sale could not be contested,

 as recommended by the
                     Committee of Board of Officers in the Island.
                     
 
                  
                  
                     3 as regards lot Z the Comm were also of opinion that
                     the sale by the 
C could not be contested, & they therefore
                     recommended that the money to be 
rec from the 
C for 
Beacon
                        Hill should be spent in purchasing lot Z.
                     
 
                  
                  
                     Lord Carnarvon concurred & instructed the Com to communicate
                     with the 
C accordingly.
                     
 
                  
                  
                     The 
C consented to refund for 
Beacon Hill, but as the
                     Com had not sufficient information to enable them to fix the
                     amount, a further reference was made to the Colony.
                     
 
                  
                  
                     That information has been supplied the 
C have consented to
                     pay back $1700

 & have instructed their Agent in the Colony to make
                     that payment.
                     
 
                  
                  
                     On this point it is only necessary to inform the Gov in
                     answer to his despatch 10835 what has been done.
                     
                  
                  
                     In his despatch the Gov called attention to the question of
                     lot Z, as regards which he had rec no instructions. He must
                     therefore be informed that there is no claim ag the C for this
                     sale—but it is also necessary to consider & decide what instructions
                     should be given for its repurchase.
                     
                  
                  
                     As to the foreshore sale I suppose the Gov must also be told
                     that the sale by the C was a valid one.
                     
                  
                  
                   
               
               
                  
                  
                     I send you the two despatches you asked for—that of 
14 Aug 1865
                     deals with lot Z as shown in the Com Report 11971—by saying that
                     the sale could not be impeached. The B of Officers appeal ag
                     the decision—& it is on that appeal that 
Gov Seymour says he has
                     
rec no instructions. The Gov. 
sh therefore I think be told
                     the question has been already decided & cannot be reopened.
                     
 
                  
                  
                   
               
               
                  
                  
                     M Adderley
                     Enclose 
EC's report from 
w the 
Gov will learn that the 
HBC
                     have given orders to pay 1700$ to the Colonial 
Gov for the Land
                     sold in error and to reconvey the small strip of land referred to by
                     the E.C. State that
 M Cardwell's decision respecting lot Z conveyed
                     in his dph of 
14 Aug must be adhered to.
                     
 
                  
                  
                     That the 
Gov will have already perceived
                     from HGs dph N 23 of 
11 May that HMG have not considered themselves
                     entitled to require any modification of the Deed of Reconveyance of
                     
V.C.I. with the object of avoiding the sale of certain portions of
                     foreshore referred to in the 5 parag of the report of certain
                     public officers enclosed in 
Gov Kennedy's dph N 81 of 
20 Oct. 1866.