Smith to Under-Secretary of State

I am directed by the Governor and Committee of the Hudson's Bay
Company to acknowledge the receipt of Mr Merivale's letter of
the 25th Instant, transmitting for the information of the
Company a copy of a correspondence with Captain Leonard on the
subject of the extension to Vancouver's Island of the
regulations in respect to the acquisition of land by military
and Naval officers, and I am to acquaint you in reply that a
communication has been made to Captain Leonard to the effect
that the Hudson's Bay Company's tenure of Vancouver's Island
will expire next year, and that they are not in a position to
grant the privilege requested.