With reference to the correspondence noted in the margin
               
               
               
               
               I have the honor to transmit to you a copy of a letter from the Governor
               of the Hudson's Bay Company on the subject of a claim preferred by 
Mr.
                  Lowenburg to a lot of land forming part of the original Government
               Reserve at 
Victoria, 
Vancouver Island.
               
               This Reserve was a portion of 1212 acres at 
Fort Victoria claimed
               by the Hudson's Bay Company on the ground of occupation previous to the
               year 
1849.  By an Agreement concluded in 
February 1862 all sales of this
               land made by the Company up to that date were confirmed, on the
               condition that the unsold portion of the land, with
the
 the exception of 50
               acres, should be surrendered to the Crown.  Previously to the date of
               the agreement, the Company's Agent had sold to 
Mr. Lowenburg the lot now
               in question. Certain modifications of that Agreement were however found to be
               necessary, and 
Sir James Douglas in his despatch of the 
20th of April
                  last proposed a compromise by which he considered that the
rights
 rights of
               the Crown and the Company would be maintained.  One condition of that
               compromise was the surrender to the Crown of the lot in question (lot Z)
               and the Hudson's Bay Company assented to the proposal, so far as they had
               they power to do so consistently with the rights of individuals.
               
               Mr. Lowenburg now calls upon the Company to put him in possession
of
               of the land which he states that he bought from them in 
March 1861, and
               the Company apply to the Secretary of State to give directions for that
               purpose.
               
 
            
            
               It is true that 
Sir James Douglas in his despatch of 
24th of
                  October 1861 described 
Mr. Lowenburg as being "merely the Agent or
               instrument of the Company" in the sale and purchase of this land, but I
               do not consider that
such
 such a statement without further evidence would
               justify the Government in resisting his claim; and much as it is to be
               regretted that any portion of the Reserve should have been sold, I find
               no ground upon which the Crown could refuse to recognize the sale.