Berens to Lytton

I have the honor to acknowledge the receipt of Lord Carnarvon's
letter dated Downing Street 15th February informing me that you have
had under your consideration the statement of the amount to be
reimbursed by Her Majesty's Government to the Hudson's Bay Company
under the grant of the 13th January 1849 and signifying your
approval of the two former claims in the statement, vizt The Balance
due on account of public works and establishments and 2ndly the
costs of sending out and maintaining Settlers but requiring
explanation with respect to [the] 3rd claim, vizt the loss on
searching for Coal at Fort Rupert.

In reply I beg to remind you that the Royalty on the working of Coal
was calculated upon as likely to furnish a considerable portion of
the anticipated Revenue of the Island, and it was also of great
importance to give employment to the Miners who had been sent out by
this Company to the Colony.

It unfortunately happened that the experiments at Fort Rupert were
unsuccessful, but, as, if successful, they would have had a very
material influence on the prosperity of the Colony, it is felt by my
Colleagues and myself, that the Company have a claim on Her Majesty's
Government for a reimbursement of the amount thus laid out.

I would only add that the Coal Mine at Nanaimo has been established
upon lands, that were purchased and paid for by the Hudson's Bay
Company, in the same way as any other Settler in the Colony.