Mr Hawes
                     It seems to me that, whatever the object may have been, the grant of
                     
Vanc. Island does not contemplate, nor was apparently intended to contemplate, a continued cognisance
                     by Government of the accounts of the
                     H.B.C. in respect of the conduct of the settlement. After 5 years,
                     Government may dispatch a Commissioner to enquire & certify as to the

                     fulfilment of the conditions of the grant respecting the
                     
sale of land. P
urchase from the natives seems to be uncontrolled.
 
                  
                  
                  But it is also quite true, as the 
Govr states, that the option is given to Government of repurchasing the island in 
1859 paying the sums "theretofore laid out & expended by" the Company. If therefore the
                     Governor's agent applied to 
Govr Blanshard to vouch an account of the
                     sums expended by them, it is obvious that if he had done so without
                     enquiry or protest, this would have been taken as an admission by
                     Government that such sums had been really expended by the Company,
                     though in fact Government knew nothing about the matter: & this
                     assumption would have been all but conclusive in 1859.
Govr Blanshard therefore seems to have been quite right, & I do
                     not understand the tone adopted by the Co. in the present letter.
 
                  
                  
                  I think this should be pointed out to the Company officially,
                     though without entering into any unnecessary controversy, asking at the
                     same time for the account in question. I think this desp: also points
                     out a difficulty, / which

 I am sorry did not occur to me earlier, as to
                     the appointment of a Governor who is a servant of the Company. It is
                     plain that his vouchers of sums expended by the Company cannot be taken
                     by Government as authentic & binding.