Murdoch to Elliot (Assistant Under-Secretary)

I have to acknowledge your letter of 8th inst, with a
despatch from the Governor of B. Columbia on the subject of certain
land in dispute between the Government of the Colony and the Hudsons
Bay Co.

2. This land consists of two lots—one known as lot Z, the
other a small portion of the Beacon Hill Park. In respect to lot Z,
although the Governor treats it as still open to consideration, the
question is in fact closed. Upon this point I would beg to
refer to my report of 18th Decr 1866—and your answer of 2nd
Janry last. In respect to the portion of Beacon Hill Park, it
will be remembered that the land had been cut off from the Park by an
error in running the boundary and had been sold by the Hudsons Bay
Co. I submitted that under these circumstances the price obtained
for this land, which was said to be $1700, ought to be repaid by the
Hudsons Bay Co to the public. This suggestion was approved by the
Earl of Carnarvon and accepted by the Hudsons Bay Co who only
 stipulated that the amount to be repaid, not exceeding $1700, should
be determined by us. The Governor was in consequence requested to
furnish the necessary information to enable us to settle the
claim—and he does so in his despatch of the 24 Septr.

3. He states that the extent of land cut off from the Park was
5 1/4 Acres of an average value of $400 an Acre—but that the claim
of the Colony would be fairly satisfied by a payment of $1700. The
way in which he arrives at this result is explained in the letters
from the Colonial Secretary and the Acting Surveyor General which
accompany his despatch. The actual price of the land at $400 an
acre would of course be $2100 but it is proposed to deduct from that
sum $400 for a narrow strip of land marked on a sketch which
accompanies the Surveyor General's letter, which it is desired to add
to the Park. As this seemed a fair arrangement we proposed it to
the Hudsons Bay Co and they informed us in answer that they accept
it, and that the necessary instructions will be sent to their Agent
by the next mail. To prevent the possibility of mistake I enclose a
copy of the letter which we addressed to them on the subject and of
their answer, which I would submit should be communicated to the
Governor.

4. I infer from the Governor's despatch that he has not been
informed of the decision of the Earl of Carnarvon in regard to lot
Z. If so I presume that the present opportunity would be taken
for explaining that decision to him.