[No. 5]
               
            
            
               
               
               
               25th June 1852
               To the Right 
Honble Earl Grey
               Her Majesty's principal Secretary of State
               For the Colonial Department
               
               My Lord
               
 
            
            
            
               I had the honor of receiving on the 
21st Inst your Lordship's
               communication of the 
11th February,
               with copy of your Lordship's correspondence with the Governor of the
               Hudson's Bay Company, on the subject of certain land in 
Vancouver's
                  Island, which the Company had intimated an intention of appropriating
               with the view of extending its Fur Trade, and you have directed me to
               furnish you with any information, in my power, as to the extent and
               description of the land in question.
               
               In compliance with your Lordship's instructions, I hasten to
               afford you the desired information.
               
            
            
            
               The first of the Hudsons Bay Company's Settlements on 
Vancouver's
                  Island, was formed in the year 1843, as stated in 
Sir John Henry Pelly's
               letter to your Lordship, on the site of the present 
Fort Victoria. The
               
sovereignty of the Country as is known to your

 Lordship was then in
               obeyance, and the Treaty of joint occupation in force, which left the
               whole of the district west of the 
Rocky Mountains situated between the
               42
nd and 54 40/60
th parallel of north latitude open equally to the
               
               trade and enterprise of the Subjects of Great Britain, and Citizens of
               the United States. In the absence of law and the 
controuling influence
               of an established Government it became the custom of all parties forming
               settlements within the limits of the disputed 
Territory, to mark the
               extent of their land claims by certain fixed metes and boundaries.
               
               The lands within those limits were held as their exclusive
               property, and those rights were made good against all intruders, by the
               sole act, and at the expense of the parties in possession.
               
            
            
            
               
               The Hudson's Bay Company in common with other Companies and
               individuals established in the country west of the 
Rocky Mountains,
               accurately fixed the boundaries of their different settlements, and
               expended large sums of money in bringing the land into cultivation, and
               improving the tracts of country which they occupied. They also imported
               all kinds of useful

 plants and seeds, and introduced Sheep and Neat
               Cattle, which soon became so numerous as to occupy at some of the
               trading posts extensive tracts of country. Thus at 
Fort Vancouver on
               the 
Columbia River the Company's Farms and Stock occupied a tract of
               country 40 square miles in extent, and about 140 square miles is the
               extent of the area occupied by the Puget's Sound Company's tillage Farms
               and Stock range at 
Nesqually on 
Pugets Sound.
               
 
            
            
            
               The posts above mentioned are both within the division of the
               Territory assigned by the Boundary Treaty of 1846, to the United States
               of America; but notwithstanding, the rights of the Hudson's Bay Company
               to the lands they occupied before the Treaty, are respected by the
               Officers of that Government.
               
            
            
            
               
               On founding the post of 
Fort Victoria, the usual custom was
               observed of marking out the site of the establishment and the extent of
               land required for tillage, and a sufficient cattle range, as a
               protection from the intrusion of American citizens, who were daily
               expected on 
Vancouver's Island, it being the

 year following the arrival
               of the United States Exploring Expedition, under the command of 
Captain
                     Wilks, who devoted much attention to the survey, and
               examination of that part of the coast.
               
 
            
            
            
               The District then marked out as the Company's land, includes an area
               of about 
25 square miles on the south east corner of 
Vancouver's Island,
               commencing at 
Victoria Harbour, the line follows the salt water Inlet to
               near 
Knocken Hill, from thence it runs by 
Lake Hill, and 
Mount Douglas
               to 
Cordova Bay, on the 
Canal de Arro, from whence it follows the coast
               by 
Gordon Head and 
Point Gonzales, to the point of commencement at
               
Victoria Harbour. The accompanying sketch of the south east corner of
               
Vancouver's Island, which has been prepared for the purpose, will enable
               your Lordship to trace the description of that District herein given
               with ease and facility, and shows the exact extent of the lands improved
               and occupied by the Hudson's Bay Company, previous to the Boundary
               Treaty of 1846, and of which possession was maintained by the servants
               of the Company until it became a possession of the

 British Crown.
               
               Having thus endeavoured to give your Lordship an idea of the
               extent of land possessed by the Hudson's Bay Company on
               
Vancouver's Island, previous to the Boundary Treaty of 1846, I
               would further remark that it does not appear to be the intention
               of the Company to appropriate the whole extent of the District,
               traced upon the sketch, and occupied by them previous to the
               Boundary Treaty; a great part of it having been sold 
as, and
                  with other public land.
               
               The Company I believe propose to retain out of its former
               possessions, only three of their Farms containing in the aggregate about
               4000 acres. One of these Farms is 
at Victoria, and the two others are
               situated at the distance of three & four miles respectively east and
               north of that place. A number of Servants, and large herds of cattle
               are kept at those farms, and they are not only indispensable to 
‸the
                  Company, but of service to the Colony at large, as it is from these
               farms that the Settlers procure seed and cattle to Stock their land, at
               the moderate cost of £5 per head for horses, and Milch cows,
               respectively; and there is otherwise no resources of that kind within
               the reach of

 limited means. With the exception of the 
Farm at Fort
                     Victoria, 
which is advantageously situated on Victoria harbour, and will
                  become valuable as the Colony improves, The Company's Farms possess no
               exclusive advantage in point of soil or position. Such advantages were
               in fact less considered in choosing the sites occupied, than the object
               of placing a restraint, on the wandering Tribes of Indians, who
               committed depredations on the cattle for which purpose they are
               admirably adapted. They contain Prairie and Wood land in convenient
               
proportions, with some extent of rock, and other unimprovable country,
               and are in no manner superior as cultivable land, to numerous other
               places, in the same District.
               
               I have further to inform your Lordship that the Colony continues
               in a state of perfect tranquility, and that the Native Tribes are quiet and orderly.
               
            
            
               I have the honor to be
               
               Your Lordships Most obt humble Serv
t
               
               James Douglas
               
               Governor
               
               
               
               Minutes by CO staff
               
                
                  
                  
                     See 9080. 4 Oct/52.
                     
                  
                  
                  
                   
            
            
               Documents enclosed with the main document (not transcribed)