Colonial Despatches

I have the honor to acknowledge the receipt of your despatch No. 6 of the 10th of January last, in reference to the arrangements connected with the resumption of Vancouver Island by Her Majesty's Government.

There is no doubt that inconvenience and delay must be occasioned by the system to which you refer of sending to England all deeds of grants of Land in Vancouver Island,in in order that the seal of the Hudsons Bay Company may be affixed to them, but this appears to be unavoidable, so long as it is necessary to the validity of the grants that they should bear that seal. The arrangement however is temporary only and will, I trust, shortly be discontinued. As soon as the pecuniary accounts between H. M's Government and the Company are adjusted and the Island is reconveyed to the Crown, the usual more convenient system will no doubt be brought into operation.

With regard to the recommendation contained in your despatch on the settlement of the Company's claim to Land around Fort Victoria, I have to inform you that until the title of the Hudson's Bay Company to Lands by reason of occupation prior to 1849 is decided no steps can be taken for the settlement of the questions respecting this particular Land but that when a decision has been obtained on the general question the local Government will be consulted before deciding on the finalarrangements arrangements to be made with the Company in regard to the disposal of the ground in the vicinity of Victoria.