Corry to Merivale (Permanent Under-Secretary)

I am commanded by the Lords Commissioners of the Admiralty to call
your attention to the correspondence which took place between the two
Departments last Spring relative to the retention of Thetis Island,
Esquimalt, Van Couver's Island for Naval purposes, from which it
appeared that the sale of that Island to a Private Individual would
not be completed, but that it would be reserved as desired.

Upon a late visit, however, of the Naval Commander in Chief, he was requested to give up the Island to an Individual who stated that he
had purchased it, the day previously, at a public Auction.

It appearing that the purchase had been properly conducted, the Crown
Solicitor was consulted as to the course most advisable to be adopted,
and as that Officer reported

that in the grant by the Crown to the
Hudson's Bay Company of VanCouver's Island, there is an express
saving clause, reserving to itself all such
Land or so much thereof as may be required for public purposes,

the question of right is definitively Settled.

My Lords therefore request that you will move Secretary Sir E.B.
Lytton to cause them to be furnished with the Title Deeds, so that
the Island may be legally conveyed to the Naval Department.