Hamilton to Rogers (Permanent Under-Secretary)

I am directed by the Lords Commissioners of Her Majestys
Treasury to acquaint you for the information of the Duke of
Newcastle that after a full consideration of all the circumstances
represented in your letter of the 21 March last, Their Lordships
are prepared to acquiesce in the proposed investigation before
the Judicial Committee of the Privy Council into the title of
the Hudson's Bay Company to certain Lands in British Columbia and
Vancouver's Island and to accept the decision of the Council in
the matter.

As regards however possible claims to compensation supposing
a decision favorable to the Company, Their Lordships cannot
consent under any circumstances to come under any obligation in
respect of them so far as the Revenues of the Country are concerned.

The question must be considered as one between the Local
Governments acting through the Crown on the one hand and the
Company on the other, and any claims which may arise out of the
proposed reference to the Privy Council must be met out of such
means as the respective parties have at their disposal and can in
no case be allowed to fall upon Funds which would have to be
provided by Parliament.

In like manner the expenses connected with the
enquiry before the Privy Council might in Their Lordships
opinion be defrayed by the Governments of Vancouvers Island
and British Columbia jointly.