No. 91

I transmit to you, for your information, the enclosed copies of a
correspondence which has taken place with regard to the investment
of the Sinking Fund of the Loan raised under the British Columbia
Ordinance No. 7 of 1864, and to the appointment of Trustees for the
management of the Fund.

You will observe that I am unable to authorize the investment of
the Sinking Fund in the manner proposed by the Crown Agents owing to a
doubt which has arisen respecting the intention of the 12th Section of
the Act. It is uncertain whether the word "thereof" in the 10th line of
that section relates to additional moneys voted by the Legislature for
the repurchase of the Debentures under the Loan or to the accumulation
of the Sinking Fund itself, out of which latter fund it would be
obviously imprudent to repurchase the Debentures.

I have to request that you will acquaint me with the interpretation
which your government considers should be placed upon this Clause, and
the similar Clauses in the former Acts quoted in the Treasury letter,
and that if necessary you will procure their amendment.