Walcott to Elliot (Assistant Under-Secretary)

I have the honor to report for the information of the
Duke of Newcastle that in pursuance of oral instructions
received through Sir F. Rogers I had an interview on the
11th instant with Mr Dallas the Colonial representative
of the Hudsons Bay Company and Mr Maynard the Company's
Solicitor on the subject of the proposal made by Governor Douglas in his despatch of the 6th May last for the
settlement of the Land claims of the Company in British Columbia.

2. The details of this proposal with the modifications
thereon suggested by Mr Dallas in his memorandum of
the 15th ultimo were fully discussed, and I feel bound
to add in the most candid and liberal spirit by Mr Dallas
and Mr Maynard. The results at which we arrived are
embodied in the enclosed Memorandum which we made at the time,
and which has since been seen and assented to by Mr Dallas
as a satisfactory arrangement for the final settlement of all
the Company's outstanding Land claims in British Columbia.

3. I fully explained to these Gentlemen that I had no
authority to bind the Government to this arrangement, and
could only report it for the consideration of the Duke of Newcastle.

4. Being fully aware of the desire of the Duke of
Newcastle that a liberal construction should be placed on
the Companys claims, my principal aim was to reduce what was
vague and indefinite in them to as much precision as
practicable, and thus to save future references to and from
the Colony, and to facilitate an immediate settlement so
desirable on all accounts. With this view too, provision
has been made for determining on the spot by arbitration any
subordinate questions that may arise.

5. Under the proposed arrangement, the whole quantity* of Land to be conveyed in fee to the Company in satisfaction of all their claims will not exceed 2913 Acres. But the Company
are to have the liberty of purchasing within Six Months and in one
locality only, vizt at the Farm near New Langley at 4s/2d an
Acre (the present minimum upset price of Lands in the Colony)
an additional quantity of Country Land not exceeding 1500 Acres.
This completely, and I think satisfactorily disposes of the
proposal in Mr Dallas' memorandum of 15 August last that
the Company should have "the right of purchase at the minimum
price of all or any portion" of their claims. All money and
other Land claims not mentioned in the accompanying memorandum
are also disposed of—and provision is made as suggested by
the Governor in his despatch 88 of the 11th Jany 1861,
for granting an equivalent in Land should any of the Lands
intended to be now conveyed to the Company be found to have been
irrevocably alienated.

6. The enclosed Table will show the extent of the Company's
claims as originally put forth in an Enclosure to the Company's
letter of 31 May 1859 amounting to upwards of 98000 Acres, the extent of the concessions suggested by the Governor in his
despatch of the 27th August last, the Company's proposed
modifications, and the results of the present arrangement.

7. Should the Duke of Newcastle approve of the terms
now laid down, it will be probably thought advisable to
communicate them for the formal acceptance of the Company,
and when that is received, to forward them to the Governor
with instructions to carry them out as promptly as possible.

8. I would also suggest that the Arbitors should at
once be named (no better person on the part of the Government
occurs to me than Colonel Moody) and that the Governor should
be further instructed to convey to the Company the lands at each
locality as fast as the boundaries &c are determined, taking
care that in each deed it is clearly made to appear that the
grant is in consideration and full discharge of all the
Company's claims against the Government in that locality.