I have to acknowledge your letter of the 
16 ultimo, enclosing a
               Despatch from the Governor of 
VanCouvers Island (
19 July N 25)
               reporting the proposed sale of certain inferior land in the
               neighbourhood of 
Victoria at a reduced price, and the intention to
               open the 
Cowitchan & 
Nanaimo valleys for settlement.
               
               2. 
Governor Douglas encloses a letter from 
M Pemberton, the
               
Colonial
Colonial Surveyor, proposing that as certain lands in the
               neighbourhood of 
Victoria are of an inferior description, and as if
               not occupied the survey lines will be obliterated, they should be
               sold at 4/2 an Acre, instead of 20/-. 
Governor Douglas
               reports that he had approved this proposal, and that the land would
               be put up to sale on the 
1 August last at the price suggested.
               The only objection to such an arrangement of which I am aware is,
               that it induces settlers to purchase land which 
is
is not the most
               advantageous for settlement—but as the tracts in question are not
               extensive and there are public objects to be promoted by the
               arrangement, it does not appear to me necessary to insist on that
               objection. Moreover the transaction will probably have been
               concluded before any instructions from the Secretary of State could
               reach the Colony.
               
               3. 
M Pemberton further proposed that considering the small number
               of bôna fide settlers in the Colony the Lands at 
Cowitchan and 
Nanaimo
               which
which have been surveyed should for the present be closed, to avoid
               the dispersion of Settlers in the presence of numerous Indian Tribes.
               From this view 
Governor Douglas dissents as likely to give rise to
               complaint and retard the legitimate progress of the Colony. On this
               point the opinion of the Local Authorities must be supreme, and, I
               apprehend, that the Secretary of State cannot do otherwise than
               acquiesce in 
Governor Douglas' decision.