No. 3

I have the honor to transmit to you a copy of a letter from Mr.
C.F. Dowsett bringing under my notice the hardship to which Captain
Houghton, late of Her Majesty's Army, has been subjected by an unexpected
alteration of the privileges in the acquisition of land accorded to
Naval and Military Officers in British Columbia.

As Captain
Houghton left England in July last, and had previously
sent out the stores required for his settlement in the Colony, there can
be no doubt that he had made his arrangements to leave the Army for the
purpose of settling there, not only before he knew of the change in the
Regulations, but before that change was known to any one in this
Country there was nothing to lead him to expect such a change, and he
omitted no precaution, apparently, which a prudent man could be expected
to take to ascertain on the best authority the terms offered to Settlers
of his description.

Under these circumstances I am of opinion that to subject Captain Houghton to loss on account of a Proclamation, which, as far as he is
concerned must be regarded as ex post facto, would be an injustice and a
hardship.

In order therefore to relieve Captain Houghton and preserve the
good faith of the Government in this matter, I have to authorize you to
submit to your Council an Ordinance exempting from the operation of the
Proclamation No. 2 of 1863 any Officers who can shew that he left the
Army with the intention of settling in British Columbia previously to the
Horse Guards Circular of the 31st of August 1863 and who is prepared to
depose that he was not aware at the time of leaving the Army of the
alteration in the privileges allowed to Officers.