Peel to Rogers (Permanent Under-Secretary)

With reference to your letter of 15th Ultimo, on the Subject of the
Claim of the Hudson's Bay Company on the resumption of Vancouver's
Island by the Crown, I am Commanded by The Lords Commissioners of Her
Majestys Treasury to transmit Copy of Mr Andoes Report of 24th
Ultimo for the information of the Duke of Newcastle.

I am directed to request that you will observe to His Grace that
previous to submitting to Parliament a Vote to defray expenses
consequent upon the resumption of Vancouver's Island from The
Hudson's Bay Company by The Crown, this Board had given much
Consideration to the claims of that Company, that the Sum of £55,000
was submitted to Parliament as a maximum and that The House of
Commons evinced some hesitation in Voting it.

Their Lordships have since further considered the Representations
made by the Company, and in Their Letter to you of 20th June, after
adverting to the Reports of Mr Murdoch and Mr Andoe, My Lords
expressed Their opinion that, while the claims of the company could
not be considered as Established to an extent much beyond £25,000 in
addition to £25,000 paid on account, yet, with a view to the
advantage of the Colony from an Early and amicable Settlement, They
would not object to pay the Company £30,000 in full Satisfaction of
all these claims.

My Lords have given further and full consideration to the letter of
the Governor of the Company of 4th Ultimo, with the Report thereupon
of Mr Andoe, and Their Lordships have only to repeat that they would
not feel justified in extending the offer made in the communication
of 20th June, or in Submitting any further Vote to Parliament in
respect of the Claims of the Company.