No. 149

I have hitherto deferred any reply to Lord Granville's Despatch
No 46 of the 12th May last respecting the transference of the
Crown Fund of Vancouver Island to the general Revenue of British
Columbia, because it was not possible to do anything under his
instructions until the next meeting of the Legislative Council.
Since that Despatch was written the probability of the early
Union of this Colony with the Dominion of Canada has very much
increased. On the Meeting of the new Legislative Council in
January there seems to be little doubt that the business first
attended to will be the completion of the terms of agreement.
The circumstances of the Colony will be so changed by
Confederation that the arrangement proposed by Lord Granville in
respect of the Crown Fund will scarcely be applicable. The
Crown Lands of Vancouver Island have already been transferred to
the local Government by the operation of the Land Ordinance,
1870. And I submit that it will now be best to leave the fund
in its present position until the Union has been completed, when
it may be transferred to the local government without any stipulation.