Colonial Despatches

I have the honor to acknowledge the receipt of Mr Merivale's Letter, dated Downing Street, 31st March 1858, transmitting a copy of a letter from the Secretary to the Admiralty respecting the sale to a private individual of certain property which had been used by the Naval Authorities, and also copies of your Lordship's reply thereto and of a Despatch which your Lordship has addressed to Governor Douglas upon the subject.

In reply I beg to express my regret that the Colonial Surveyor, Mr Pemberton, should have taken upon himself to dispose of the small Island in question, without consulting Governor Douglas. Had he done so I have no doubt that the sale would not havebeen been effected, in as much as in consequence of a communication received from the Rt Honble Henry Labouchere, then Secretary of State for the Colonies, under date the 14th Novemr 1855, instructions were sent by the Hudson's Bay Company to Governor Douglas, on the 10th December of that year, to make no sales of land in the vicinity of Esquimalt Harbour.

Under these circumstances I beg to state for your Lordship's information that the Committee of the Hudson's Bay Company will decline to complete the Sale, and the Island in question will be reserved for the use of the Naval authorities.