Confidential

With reference to my despch. of this days date, approving of the
measures you have recently taken for granting occupation without
purchase of certain lands situate within the surveyed districts of
Vancouver Island, I think it may be desirable to send you
confidentially the enclosed copy of an opinion obtained for the Law
Advisers on the question, to whom the right of disposing of the
proceeds of the sale of public land will belong, when the rights of the
Hudsons Bay Co have ceased. The opinion has of course no practical
application until that event may take place. But it is as well you
should be early informed on the subject as I believe that discussions
respg. it have already taken place in the Legislature of the Island.