No. 34

I duly received your Despatch No. 11 of the 20th of April last in
which you propose as a final Settlement of the questions in dispute
between the Crown and the Hudsons Bay Company that the Crown on the one
hand should give up a lot of land at the foot of Fort Street assigned to
it by the Agreement of February 1862 for a Harbor Masters Office &c and
that the Company on the other hand should surrender in exchange for it a
lot at the foot of Broughton Street for the same purpose and should also
give up a portion of the Government Reserve marked Z on the plan
prepared by Mr. McTavish, and the lots 1603, 1605 and 1607—The first
being the lot on which the Post Office stands, and the other adjoining
lost required for the Public Service.

I submitted this proposal for the consideration of the Hudson's Bay
Company, and you will perceive from the enclosed Copy of a letter which I
have received from them in reply that they are ready to accept this
arrangement so far as they have the power to do so; but they desire it to
be understood (as it is reasonable) that they surrender only the rights
they actually possess, and that the arrangement is made subject to and
saving the rights of third parties (if any) to whom the lots in question
may have been already conveyed.

I have therefore to instruct you, as soon as the lots in question
have been transferred to the Crown, to prepare an accurate Map of the
land and to settle with the Agent of the Company the terms in which the
land to be secured to the Company and that to be returned to the Crow
are to be described in the reconveyance of the Island to be Crown. As
soon as you furnish me with these particulares, Letters Patent will be
passed under the Great Seal for effecting the reconveyance.