Berens to Lytton

I have the honour to acknowledge the receipt of the Earl
of Carnarvon's letter of the 7th Instant in which he announces
first that Her Majesty's Government must insist on the strict
fulfilment of the condition upon which Governor Douglas was
appointed to the Government of Vancouver's Island, and British
Columbia, namely, his entire separation from the Hudson's Bay
Company and the abandonment of all contingent share in its profits
or retiring annuity dependant thereon; and secondly that while
you do not think Governor Douglas entitled to any separate allowance
as Governor of Queen Charlotte's Island, yet, if he has incurred
any actual expense in that capacity there would be no objection
to having his statement of those expenses entertained with a view
to reimbursement.

In reply, I have the honour to acquaint you that no time will
be lost in transmitting to Mr Douglas a copy of Lord
Carnarvon's letter in order that he may at once be made aware of the
determination of Her Majesty's Government on both those questions.

As regards Mr Douglas's retired interest in the Fur Trade,
I have only to observe that although the Directors of this Company
do not feel justified in the present state of affairs in exercising
their right of pre-emption, they trust he may be enabled to find
some other means of disposing of his remaining interest in the Company.