No. 3

With reference to your Grace's Despatch No. 48 of the
24th August 1860, acquainting me that the claims of the
Hudson's Bay Company to certain lands in British Columbia had
been referred, by mutual consent, to the Judicial Committee
of the Privy Council, I would beg to submit to Your Grace that
in any arrangement which may be come to, a proviso should be
inserted to the effect that should any portion of the land
confirmed to the Company at any particular spot have been
alienated by the Government, an equivalent in land is to be
allotted elsewhere.

2. The land claimed by the Company in British Columbia has
been reserved as far as was practicable under the circumstances,
but it may be found that some trifling portions have been
unavoidably or unintentionally sold, and therefore a provision
for such a contingency is necessary to guard against any
subsequent controversy and reference.

3. By such a Provision no injustice will be done to the
Hudson's Bay Company, for no land actually occupied and
possessed by them could be so dealt with, as actual occupation
would of course be their security against intrusion, and
prevent the alienation to others of what the Company really
required, and therefore the loss of a fractional portion of
unoccupied land in one place could be fairly met by the
appropriation of an equal portion elsewhere.