Murdoch and Wood to Merivale (Permanent Under-Secretary)

We have to acknowledge your letter of 10th instant enclosing a
letter from the Governor of the Hudsons Bay Company, accompanied by a
communication from Mr Douglas the Governor of Van Couvers Island
proposing to sell a tract of Land in that Island known as the Governor's
Reserve.

2. Mr Douglas expresses his opinion that the sale of the
Governors Reserve would be advantageous to the Island, as at present it
remains unproductive and a hindrance to settlement, and without a large
expenditure must continue so. He proposes, therefore, to take advantage
of an offer made to him by Mr Pemberton, a gentleman who has recently
arrived in the Island, for the purchase of a portion of the Reserve.

3. The documents in this Office afford no information on the
subject of the Governor's Reserve at Van Couver's Island. As a general
rule, however, we have no doubt that such Reserves, if of any extent,
are objectionable. We think, therefore, that the application of the
Governor and of the Hudson's Bay Company in this matter may properly be
complied with.