No. 5

With reference to the correspondence noted in the margin

*

I have the honor to transmit to you a copy of a letter from the Governor
of the Hudson's Bay Company on the subject of a claim preferred by Mr.
Lowenburg to a lot of land forming part of the original Government
Reserve at Victoria, Vancouver Island.

This Reserve was a portion of 1212 acres at Fort Victoria claimed
by the Hudson's Bay Company on the ground of occupation previous to the
year 1849. By an Agreement concluded in February 1862 all sales of this
land made by the Company up to that date were confirmed, on the
condition that the unsold portion of the land, with the exception of 50
acres, should be surrendered to the Crown. Previously to the date of
the agreement, the Company's Agent had sold to Mr. Lowenburg the lot now
in question. Certain modifications of that Agreement were however found to be
necessary, and Sir James Douglas in his despatch of the 20th of April
last proposed a compromise by which he considered that the rights of
the Crown and the Company would be maintained. One condition of that
compromise was the surrender to the Crown of the lot in question (lot Z)
and the Hudson's Bay Company assented to the proposal, so far as they had
they power to do so consistently with the rights of individuals.

Mr. Lowenburg now calls upon the Company to put him in possession
of the land which he states that he bought from them in March 1861, and
the Company apply to the Secretary of State to give directions for that
purpose.

It is true that Sir James Douglas in his despatch of 24th of
October 1861 described Mr. Lowenburg as being "merely the Agent or
instrument of the Company" in the sale and purchase of this land, but I
do not consider that such a statement without further evidence would
justify the Government in resisting his claim; and much as it is to be
regretted that any portion of the Reserve should have been sold, I find
no ground upon which the Crown could refuse to recognize the sale.

I have therefore to authorize you to take the necessary steps for
giving Mr. Lowenburg a valid title to the land in question.