Colonial Despatches

I have to acknowledge your letter of 13th inst, with one from the Governor of the Hudsons Bay Company, enclosing a Memorandum by Mr Dallas on the subject of Governor Kennedy's despatch of 2nd Janry last.

2. Governor Kennedy, in explaining the circumstances which had led to the enclosure of the public Park in Victoria, and vindicating himself from the complaints to which it had given rise, coupled the name of Mr Finlayson an officer of the Hudsons Bay Co with that of Mr Medana the principal complainant. The object of Mr Dallas' Memorandum is to repudiate all connection on his own part and that of Mr Finlayson with Mr Medana. Nothing turns on the question whether there was any connection between Messrs Finlayson and Medana in this matter, but I would recommend that a copy of Mr Dallas' Memorandum should be sent to the Governor.

3. Mr Dallas goes on to state that the whole circumstances connected with the infringement on the Park were fully investigated by the Commissioners appointed by the Crown in 1862, and allowance was made for this and all other disputed matters in the compromize or indenture of Agreement then drawn up. I cannot acquiesce in this description of what took place on the occasion referred to. Mr Dallas no doubt mentioned that an error had been committed in laying down the line of the Park boundary, and explained that it had been discovered by himself—but we were not in a position, nor did we attempt, to enter into any investigation of the subject—nor were we aware at that time that any dispute had arisen between the Company and the Local Government respecting it. There was therefore no special "allowance" made on this account in the Agreement concluded by us—as Mr Dallas appears to assume—although the object of that Agreement being to confirm all Acts legally done by the Company in dealing with the land which they claimed at Victoria, it would determine the boundary of the Park in accordance with the view of the Hudsons Bay Co, if it could be shown that the Company were legally entitled to deal with the portion of Land which had been unintentionally cut off by the error in drawing the boundary.