Murdoch to Elliot (Assistant Under-Secretary)

I have to acknowledge your letter of 14th instant,
enclosing a Despatch from the Governor of British Columbia,
on the subject of the arrangement to be made with the
Hudson's Bay Co for the settlement of their claims to
land in that Colony.

2. Governor Douglas suggests, that in any arrangement
that may be come to a proviso should be inserted, that if
any Land which has been alienated by the Government should
be adjudged to have been the property of the Co
compensation for it should be given by an equivalent in
Land elsewhere. I apprehend that the only question which will
be submitted to the Judicial Committee of the Privy Council
& on which they will give a decision, will be the legal
title of the Company to Land in British Columbia by reason of occupation or other circumstances—but that the question
as to the particular lands to which they may be entitled,
if any—and, if their Title is established, as to the
compensation to be given for any that may have been alienated,
will have to be settled subsequently between the Executive
Government and the Company. It would be impossible under
these circumstances to insert the proviso which Governor Douglas recommends—but he might be informed that the point will not be
lost sight of when the proper time arrives for considering it.