Berens to Lytton

I have the honor to acknowledge the receipt of Mr Under Secretary
Merivales letter of the 24th ulto. accompanied by Copies of a
Correspondence between him and the Secretary of the Admiralty and
requesting this Company to take such steps as may be in their power
to forward the wishes of the Lords of the Admiralty.

In answer I beg to state that Thetis Island was included in a Sale
made by Governor Douglas early in 1856 before he was in receipt of
the Communications addressed to him by this Company desiring that no
further sales should be made of Land in the Esquimalt District. The
Sale in question was of 24 acres including the Island and produced
£24—which sum is included in the return of Sales made by the Company
to the Colonial Office.

*

The Sale by Auction which is referred to in the letter of the
Secretary of the Admiralty to Mr Merivale of the 17th ulto. was not
made by this Company or any one acting for them but must have taken
place in connection with the purchase made in the early part of 1856
before referred to.

We are aware that in the correspondence
that has taken place on this subject it has been stated that the
Government or those representing them had been in actual possession
of Thetis Island for a considerable time before the grant to this
Company—but it is clear that Mr Douglas had no knowledge of such
occupancy or he would not have disposed of it and it is equally clear
that this Company was unrestricted as to the Sale of any Land
included in the grant to them except what was required for Public
purposes or for Naval establishments but then as suggested by Mr
Merivale's Letter to the Secretary of the Admiralty of the 31st
March last it was incumbent upon the proper authorities to give
notice to this Company that any portion of the Land was so required
and till such Notice was given the authority of the Company to sell
was without restriction.

I regret very much that the intimation given to this Company to that
effect by Mr Merivale's letter of the 14th November 1855 was not
received in time to have enabled them to have prevented the Sale of
the Land in question. They at one time had supposed that the object
had been attained, but their subsequent Communications with Mr
Douglas have put it beyond all doubt that the Island in question had
been sold before he had received the instructions of the Directors of
this Company to abstain from any more Sales in the Esquimalt
District.