No. 27

I have had before me your despatch No. 16 of the 28th of March
last, accompanied by an address from the House of Assembly relative to
the price of Land in Vancouver Island.

You have already learned from the Duke of Newcastle's despatch No.
26 of the 28th Ultimo that Her Majesty's Government have no objection
to the proposed adoption of the price of 4s/2d per acre. I must
explain however that it is impossible to authorize you to adopt this,
as a liberal conformity with the terms of the Address would require,
as a maximum price. A maximum price for all Crown Land cannot with
propriety be established by law. What you are at liberty to do is to
announce the sum of 4s/2d per acre as the price at which all
ordinary rural lands may be exposed to auction, and as soon as they have
been once so offered to sale without being purchased, they may be sold to
anyone who applies for them at the rate of 4s/2d as a fixed
price, without being subjected again to auction.

With regard to the terms on which land may be occupied with a
right of preemption, you have been apprized, the the Duke of Newcastles
former despatch No. 23 of the 7th of May, that so far as regards
British Columbia, His Grace suspended his opinion until he should
receive a report from you on Captain Clarke's scheme. For the same
reason the adoption of a decision on the question in Vancouver's Island
must likewise be suspended, as it is desirable that, unless there
should be some very special reason against it, the practice adopted in
one Colony should also be established in the other.

On the general subject of the disposal of lands and of the
provision to be made against abuses in the occupation of them, I
enclose for your information a useful report from the Commission of
Colonial Lands and Emigration.