In accordance with the request expressed in 
Mr Merivale's
               letter of the 
20th Ultimo,
               
               that the Directors of the Hudson's
               Bay Company will at their earliest convenience furnish Her
               Majesty's Government with a Statement of the Sums for which they
               may claim repayment as laid out and expended by them in and upon
               
Vancouver's Island and premises, and of the value of their
               establishments, property and effects thereon, according to the
               terms of the grant,
               
               I have the honor to transmit the accompanying accounts, in
               continuation of those forwarded on the 
16th September 1856,
               shewing the amount to be reimbursed to the Company by Her
               Majesty's Government on the transfer of 
Vancouver's Island, so
               far as can be ascertained at the present time.
               
               Minutes by CO staff
               
               
               
               
                  
                  Lord Carnarvon
                     These accounts will not be finally settled until 
May 1859 when
                     the Company's property in 
Vanc. Id is to cease.  I scarcely
                     know what steps we are to take, in order to check them.  For
                     we have no officer of our own on the island: the Governor
                     himself is a servant of the Company.
                     
 
                  
                  
                     Perhaps the first step might be to refer to the Land & Emn
                     Coms who often aid us with their advice in matters of this
                     description.  They might at all events examine the account, &
                     call for explanation either verbal or written where they deem it
                     required.
                     
                  
                  
                   
               
               
                  
                  
                     This seems very advisable—some of the charges such as those for
                     sending out Settlers engaged as servants to the HBC but not
                     required for trading operations appear to me to be prima facie
                     questionable.
                     
                  
                  
                   
               
               
                  
                  
                     Refer to L & E Commissrs in first instance.  Probably some
                     reference to a third party, with power to arbitrate, will be the
                     best way of settling this.
                     
                  
                  
                  
                   
                
            
            
               Other documents included in the file
               
                
                  
                  
                     Draft, Colonial Office to Land and Emigration Commissioners,
                     11 March 1858, forwarding copy of correspondence and enclosures
                     for examination and report.
                     
                   
                  
                  
                     Draft, Colonial Office to Attorney General and Solicitor General, 31
                        May 1858, forwarding copy of correspondence and enclosures, with
                     explanation, for opinion on the obligation of the government to
                     compensate the Hudson's Bay Company.
                     
                  
                   
                     
                     
                        Draft, 
Carnarvon to 
Shepherd, 
28 July 1858, advising of the
                        government obligation as detailed by legal advisors.
                        
                     Minutes by CO staff
                     
                      
                        
                        
                           I send this for approval, as Hudson's Bay Co. matters are under
                           consideration but perhaps it does not press.
                           
                        
                        
                        
                        
                        
                           Returned to the Dt the 26th.