Head to Rogers (Permanent Under-Secretary)

I have the honour to acknowledge your letter of the 24th April and I
beg that you will thank the Right Honorable the Secretary of State
for giving to the Hudsons Bay Company the opportunity of offering
some remarks on the subject to which it relates.

I now enclose a Memorandum prepared by our Solicitors in conjunction
with Mr Dallas on the facts of the case. This latter gentleman was
the person who originally sold the lot Z to Mr Lowenberg and was
conversant with all the circumstances. It will be seen that the
enclosed Statement certified by him differs materially from the
alleged facts as recited in your letter.

Assuming that Mr Dallas's statements are correct the Secretary of
State will see it is impossible for the Governor and Committee of the
Hudsons Bay Company to give way on the points at issue. They have
always considered the Agreement of 1862 as a final settlement of all
disputed questions, binding in good faith on both parties; and they
do not admit that there are reasons for taking this particular case
out of the purview of that Agreement. When they are asked, what
means there are of obtaining the lot in question for the Colonial
Government they can only reply that they presume it may be done by
compensating Mr Lowenberg, but they do not see that this Company is
the party who ought to pay such compensation.

If Mr Cardwell is of opinion that the whole matter should go before
a Court in the Colony the Hudsons Bay Company must do their best to
defend it there, or in any Court of Appeal to which it may hereafter
be carried.