Colonial Despatches

With reference to the recent correspondence that has taken place on the forms by which the reconveyance of Vancouver Island to the Crown is to be effected, I wish to call your attention to the clause in the grant to the Hudson's Bay Company of the 13th of January 1849, by which so long as the lands of the Colony belong to the Company they are entitled to deduct by way of profit a rate of 10 percent on the gross amount of land sales.

I have been in communication with the Hudson's Bay Company on this subject, and Mr. Berens has expressed his concurrence with me that the right to the deduction of this profit ceased on the payment to the Company of the sum agreed upon for the repurchase of the Island, even although the Company may still for the sake of form continue to effect thesales sales until the Island has formally been transferred to the Crown.

The repurchase money was paid to the Company on the 6th of October last.

If previous to that date you should have made any land sales under the authority of the Hudson's Bay Company, which Mr. Berens believes to be the case, the percentage on such sales will still be due to the Company.