No. 119

I have the honor to inform you that after protracted discussions
the sum which Her Majesty's Government proposed to pay to the Hudsons
Bay Company in respect of their different outlays in Vancouver Island
was £30,000, but that the Company continued to demand £35,000.

Under these circumstances a compromise was offered on the part of
Her Majesty's Government, and has been accepted by the Company, by
which the difference has been divided, and the sum of £32,500 has been
agreed upon as the amount to be paid in discharge of the Company's
claims on the Crown in consequence of it's resumption of Vancouver
Island. This payment is about to be made forthwith to the Company by
the Treasury.