Colonial Despatches

I have to acknowledge your letter of 7th instant, with one from the Hudsons Bay Co on the subject of the recent Agreement between the Company and H.M. Government relative to land in the City of Victoria Van Couvers Island.

2. By that Agreement it was stipulated that all unsold land in Victoria should revert to the Crown, except 50 Acres to be selected by the Company South of James' Bay. In transmitting the Agreement to Governor Douglas he was directed by the Duke of Newcastle to reserve out of the lands to be surrendered a site for barracks. He answered that in fact after the selection of the 50 Acres above referred to by the Company there would remain no land to be surrendered to the Crown, and he intimated that Mr Dallas had taken a skilful advantage of his local knowledge to mislead the Government into the supposition that they were recovering for the Crown a considerable extent of Land, whereas they were in reality giving up to the Company what the Crown was before entitled to.

3. This despatch was communicated to the Hudsons Bay Co. In his answer Mr Berens makes no allusion to the deception said to have been practised by Mr Dallas, but expressed the anxiety of the Company to carry the Agreement into operation as quickly as possible, and discusses a question that has arisen in the Island between the Local Government and the Company's Agent, as to the site to be surrendered for a Harbour Masters Office. In that question the Duke of Newcastle will probably not desire to enter before receiving a report from the Governor, and if so I would submit that Mr Beren's letter should be transmitted to Governor Douglas and that Mr Berens should be informed of his Grace's decision.

4. Mr Berens offers to furnish copies of the plans of the Land to be surrendered which had been forwarded to the Colonial Secretary by the Company's Agent. If no copies of these plans have been received at the Colonial Office (as I suppose is the case) his offer should, I presume, be accepted [marginal note: None have been received]. They may probably show how far Governor Douglas is justified in stating that the Government had been overreached by Mr Dallas.

5. Mr Berens likewise suggests that the reconveyance of the whole Island and of the Land at Victoria should be comprized as a single instrument and that with a view to its preparation and execution in this country instructions should be sent to the Governor to forward a plan of the Island showing the portions of it to be excepted from the reconveyance. He states that very pressing instructions to this effect have been sent by the Company to their Agent. I presume that the Duke of Newcastle will issue the instructions suggested to the Governor, but to prevent the difficulty and delay which would arise from discrepancies between the Maps sent home by the Governor and the Companys Agent it would be very desirable that those officers should communicate with each other on the spot—and agree on the exact extent of the reservations to be made and the manner in which they should be described in the reconveyance.