No. 2

I have the honor to transmit to you a copy of a letter from Mr.
 Thos. W. Mackean enquiring on behalf of the British Columbia Mining
Company what concessions Her Majesty's Government will be prepared to grant to
that or to any other Mining company which may be formed.

It is no doubt very desirable that Capital should be systematically
applied in working the Mines, and therefore the formation of Companies
should not be discouraged. But in British Columbia, as in Australia, the
Mines have never been conveyed away with the lands. On the contrary
they have been reserved to the Crown to be leased on suitable terms;
and to this principle I think it desirable to adhere.

I shall be glad to consider any suggestions which may occur to you
on the terms on which companies might properly be encouraged to look for
a lease of Mines. These terms should probably be the same whether in
respect of Mines found upon lands of which the Company might have
acquired the freehold, or upon lands which still belong to the Crown.

I enclose for you information an Act passed by the Legislature of
Victoria in 1858 to facilitate the formation of Mining Associations.