 
                  
                  259. N. America
                     1848.
                     
                     
M Merivale
                     My note on 259. North America. was written without having the necessary
                     documents before me, but having since referred to them, I find that the
                     statement, I have already made is correct.
 
                  
                  
                  The question relative to the occupation of 
Vancouver's Island stands at present in this posture.
The dispute with America concerning the 
Columbia Territory being settled, 
Sir John Pelly, as the organ of the Hudson's 
Bay. 
Bay
                     Company enquired, on the 
7 of September 1846,
                     the intentions of the Government as to the acquisition of Lands or
                     formation of Settlements on the North side of the British Boundary Line.
                     He stated that the 
Hudson's Bay Company had formed an establishment on
                     the Southern part of 
VanCouver's Island, which they were annually
                     enlarging, and that therefore he was anxious to know whether they would
                     be confirmed in the possession of such Lands 
as 
as they might find it
                     expedient to add to those which they already possessed.
This enquiry gave rise to various minutes on the part of 
M
                        Stephen and 
M Hawes on the subject both of the proprietary rights of
                     the Company, and of the policy of settling 
VanCouver's Island. I send
                     those minutes for your perusal.
They are attached to 1074 North America. 1846.
                  
                  
                  The information 
seeming 
seeming however to be defective, 
Sir J. Pelly was
                     called upon to state what were the limits of the Territory the Company
                     sought to obtain, and whether he was legally advised, that they could
                     receive and hold in their Corporate Capacity any Lands in the Dominion's
                     of the British Crown westward of 
the Rocky Mountains.
The answer returned by 
Sir John Pelly on the 24 of October
                     1846, was that in his opinion the Company might legally 
hold 
hold any portion of the Territory to the West of 
the Rocky Mountains which the Crown might choose to annex to 
Rupert's Land.
On the question of the limits he forwarded certain reports which
                     do not explain with adequate precision the extent of Country sought for.
                  
                  
                  Lord. Grey then replied, 
that (
14 Dec 1846,)
                     that as he could not announce the decision of the Government. on the
                     question of colonizing the 
Oregon Territory, his Lordship wished to have a 
specific 
specific proposal from the Company — that he was prepared to assent on
                     behalf of 
the Queen to a grant to the 
Hudson's Bay Company of certain
                     Lands in 
Van Couver's Island or in other parts of the 
Oregon Territory
                     but that before the issue of such grant, he would require the production
                     by the Company of an opinion from the 
Law Officers of the Crown, to the
                     effect that the acceptance by the Company of such grant would be
                     consistent with their Charter of Incorporation.
 Other 
                  
                  
                  
Other stipulations were
                     also mentioned which though important in themselves, are not material to
                     the immediate question.
On the 
22 January 1847. 
Sir J. Pelly sent to this Office the case
                     proposed to the 
Law Officers of the Crown, and their opinion was that
 
                     "If, as was stated, the Charter 
of the Company contained 
no limitation preventing 
them from acquiring Land 
beyond a particular district 
they (the 
Law Officers of 
the 
the Crown), considered that 
the Company might receive 
and hold in its corporate 
capacity Lands in the
Queen's Dominions to the 
west of
                     the 
Rocky Mountains."
This opinion being regarded as satisfactory, 
Lord Grey wrote (
2. Feb 1847) to 
Sir J. Pelly to say that he was ready to receive, and consider the draft of such a grant as the
                     Company would accept.
On the 
5 of March 1847, 
Sir J. Pelly sent his Scheme for the proposed
grant 
 grant which underwent criticism here, and 
Lord Grey decided that the Company had made too
                     extensive a proposal. The last minute on the last paper in the North
                     American Department on this subject states. "I have seen 
Sir J. Pelly who will communicate 
with M Hawes and 
submit some less extensive
 demand.
 
                     G. 25/3/47."
This closes the correspondence
 and 
 and it seems to
                     rest now with 
Sir J Pelly to revive the subject.
 
                  
                  Lord Grey
                     Feb 15
                     Sir J. Pelly called yesterday. He desires that some proposition 
sh 
                     be made by this office to the 
H.B. Company. The Company it appears
                     
w be willing, to colonise 
this Island, towards which there are many
                     parties directing their attention, & there is already formed a Company
                     (the Pugets Sound Cy I think) which has capital & which 
w be willing to join with & 
cooperate with the H.B.
C in this undertaking. The

                     Question therefore is whether any proposition 
sh be made to the H.B.
C or the Company 
sh be called upon to propose a plan.
 
                  
                  
                  If it be true that good coal has been discovered the undertaking
                     becomes of importance. See former minutes.