No. 54

I have the honor to acknowledge the receipt of your despatch No. 6
of the 10th of January last, in reference to the arrangements connected
with the resumption of Vancouver Island by Her Majesty's Government.

There is no doubt that inconvenience and delay must be occasioned
by the system to which you refer of sending to England all deeds of
grants of Land in Vancouver Island, in order that the seal of the Hudsons Bay Company may be affixed to them, but this appears to be
unavoidable, so long as it is necessary to the validity of the grants
that they should bear that seal. The arrangement however is temporary
only and will, I trust, shortly be discontinued. As soon as the
pecuniary accounts between H. M's Government and the Company are
adjusted and the Island is reconveyed to the Crown, the usual more
convenient system will no doubt be brought into operation.

With regard to the recommendation contained in your despatch on the
settlement of the Company's claim to Land around Fort Victoria, I have
to inform you that until the title of the Hudson's Bay Company to Lands
by reason of occupation prior to 1849 is decided no steps can be taken
for the settlement of the questions respecting this particular Land but
that when a decision has been obtained on the general question the
local Government will be consulted before deciding on the final
arrangements to be made with the Company in regard to the disposal of
the ground in the vicinity of Victoria.