I have to acknowledge your letter of 
10 instant enclosing a
               further letter from the 
Hudsons Bay C on the subject of the amount
               to which they are entitled on the resumption of 
Vancouvers Island by
               the Crown.
               
               2. I do not see that I can add anything on this subject to what is
               stated in my report of 
18 March last. No new statements or
               arguments are brought forward in the present letter from the Company,
               and I continue to think that a payment

 of from £30,000 to £32,000
               would meet the justice of their claim. At the same time it would
               appear to me very bad economy, irrespective of all questions of
               policy, to incur the expense of legal proceedings for the sake of the
               difference between that sum and the amount which the Company are
               willing to accept—and if the Company are determined, I do not see
               how, without legal proceedings, they can be compelled to retransfer
               
Vancouvers Island. But I presume that the 
Duke of Newcastle will call on 
M Andoe to report on the present letter from

 the Company
               before any conclusion is come to upon it.