I have to acknowledge the receipt of your letter of the 
31 ultimo
               wherein you say that you send me enclosed a copy of 
Governor
                  Douglas's dispatch upon the subject of reducing the price of Land in
               
Vancouvers Island. This enclosure however appears to have been omitted
               as it did not accompany your letter consequently I am unable to give
               you any opinion upon it.
               
               In reference to the question as to whether our people are receiving
               money paid for land I am not aware that any public lands have been
               disposed of since the 
31 of May last nor can I conceive that such
               should have been the case as 
M Dallas has been frequently
               

instructed that no legal Titles could be granted either by the 
Gov
               or ourselves until the reconveyance of the Colony shall have been
               effected. I am also under the impression that since the 
31 of May
               being the termination of our exclusive license of trade the Affairs
               of the Colony have been entirely separate from those of the Hudsons
               Bay Company. In reply to your question of allowing the Governor to
               sell the Land and account to HM Government
               
               
               
               
               for the proceeds pending the Question of
               rightful ownership I am now preparing to answer to the letter of the
               
Duke of Newcastle of the 
30 Dec last in which this subject
               must necessarily be fully adverted to and which I hope to be able to
               forward to your office very shortly. Should you however upon the
               perusal of it consider that there [be] 

any subject upon which you
               desire further information I shall be very glad to supply it.