Confidential

I have the honor to transmit to you a Copy of a Confidential
Despatch from the Governor General of Canada suggesting at the instance
of his Ministers that steps should be taken to forward the incorporation
of British Columbia into the Dominion of Canada.

I also enclose a Copy of the reply which I have returned to Sir J.
Young.

I shall be glad to be informed to what extent the majority which
passed the Resolution against Union which accompanied your Despatch No.
26 of the 4th of March was composed of Public Officers.

You are aware that the Hudson's Bay Company have accepted the terms
recently offered to them for the surrender of their Territorial Rights
to the Crown and that in the event of the arrangement being accepted by
the Canadian Government there is every prospect of the annexation of the
Hudson's Bay Company's Territory to Canada.