Colonial Despatches

I have the honor to acknowledge the receipt of Lord Carnarvon's letter dated Downing Street 15th February informing me that you have had under your consideration the statement of the amount to be reimbursed by Her Majesty's Government to the Hudson's Bay Company under the grant of the 13th January 1849 and signifying your approval of the two former claims in the statement, vizt The Balance due on account of public works and establishments and 2ndly the costs of sending out and maintaining Settlers but requiring explanation with respect to [the] 3rd claim, vizt the loss on searching for Coal at Fort Rupert.

In reply I beg to remind you that thethe Royalty on the working of Coal was calculated upon as likely to furnish a considerable portion of the anticipated Revenue of the Island, and it was also of great importance to give employment to the Miners who had been sent out by this Company to the Colony.

It unfortunately happened that the experiments at Fort Rupert were unsuccessful, but, as, if successful, they would have had a very material influence on the prosperity of the Colony, it is felt by my Colleagues and myself, that the Company have a claim on Her Majesty's Government for a reimbursement of the amount thus laid out.

I would only add that the Coal Mine at Nanaimo has been established upon lands, that were purchased and paid for by the Hudson's Bay Company, in the same way as any other Settler in the Colony.