No. 125

In reply to Lord Carnarvon's Despatch No 14 of the 15th
of February last, I have the honor to acquaint Your Grace that
I have made careful enquiries in respect of the extent of the
Public Park at Victoria sold in error by the Hudson's Bay Company,
and of the sum received for it, and I enclose herewith copy of
reports I have obtained on the subject from Mr Young the
Colonial Secretary and Mr Pearse the Acting Surveyor General
of the late Colony of Vancouver Island.

2. It appears from these papers that the exact extent of
public land erroneously sold is five acres and one quarter, and
that the money value accruing to the Hudson's Bay Company in
consequence may be fairly estimated at $1700 or £350.10.4.

3. I notice that no allusion is made to the matter of Lot Z,
which is very much in the same category with the Sale of the portion
of the Public Park. From all that has transpired upon this subject
I think it would be a cause of future regret if the present
opportunity were allowed to pass without this affair being arranged.
I know not whether Her Majesty's Government may coincide in the
views expressed in the report forwarded by Governor Kennedy in his
Despatch No 81 of the 20th October 1866, so far as Lot Z
is concerned, but whether it may be so or not, or whether the
Hudson's Bay Company may or may not have also agreed to refund
the purchase money of Lot Z, I would urge to avoid future
complications and annoyance that the matter should be settled at once.

There is every reason to believe that only a small instalment
of the purchase money of Lot Z has been paid to the Hudson's Bay
Company, and it is certain that no title has been issued.

The matter can therefore be easily arranged by the Company. But
should Your Grace decline to interfere I believe that a compromise
can be effected in respect of the refund to be made for the Park
Land, and that if the one matter be allowed to balance the other
the local authorities of the Hudson's Bay Company can arrange the
matter with Mr Lowenberg and put the Government again in
peaceful possession of Lot Z upon the understanding that by so
doing the claim on them for the refund on account of the Park land
will be discharged. Should Your Grace approve of this suggestion
I will as soon as practicable endeavor to carry it out.

4. This proposition is very favorable to the Hudson Bay
Company and is a virtual surrender of the just claim of the Crown
to the land, but it seems a ready and liberal way of ending
a troublesome and complicated business.