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TANCOUVKU If-LAND, No t. Downing Street, 20th August, l.S(W, Sir, i ulj received your Despatch Jso. 11, of the 20th April last, in whicli you propose as j final settloment of the questions in dispute between the Crown and the JIudson's Bay Company, that the Crown on the one hand should give up a lot of land at the foot of Fort stree*-. assigned to it by the Agreement of February, lJi02, for u Harbor Master's Office, &c., and that the Company on the other hand should surrender in exchange foi* it a lot at foot of Broughton street for the same purpose, and should also give up a portion of the (iovernment liosorve marked Z on the plan prepared by Mr. McTavish, and the lots 1G03, 1605, and 1G07. The first being the lot on which the Post Office stands and the other adjoining lots required for the public service. I submitted this proposal for the consideration of the Hudson's Bay (iJompany, and you will perceive from the enclosed copy of a letter which I have received from them in reply that they are ready to accept this arrangement so far as they have the power to do so; but they desire it to be understood (as is reasonable) that they surrender only the rights they actually possess, and that the arrangement is made subject to and saving the rights of third parties (it any) to whom the lots in question may have been already conveyed. I have therefore to instruct you as soon as the lots in question have been transferred to the Crown, to prepare an i».curate map of the land and to settle with the agent of the Company tiie terms in wliich the land to be secured to the Company and that to bo returned to the Crown are to be described in the reconvej'ance of the Island to the Crown. As soon as you furnish me with these particulars, letters patent will be passed under the Great Se:d for effecting the reconveyance. { I have, &c. (Signed) NEWCASTLE. Pacific N. W. History Dept. PROVINCIAL LIBRARY VICTORIA. B. C. Sir Bdmand Hbud to the Dake of Nowoaitle. [copy.] Hudson's Bay House, London, Ist August, 1868. My Lord Duke, I have the honor to acknowledge the receipt of Mr. C. Fortescue's letter of the 24lh ultimo, transmitting extracts from a despatch addressed to your Grace by the Governor of Vancouver's Island on the subject of the land in Victoria surrendered bv ihis Company to the Crown, under the Agreement of the 3rd February, 1862, in which Mr. Fortescue announces that if the Hudson's Bay Company are prepared to surrender the portion of the Government Reserve marked Z in Mr. McTavish's plan, and the lots marked 1605 and 1607, with the adjoining loi 1603 upon which the Post Office is built your Graco will consent to give up the lot reserved to the Crown at the foot of Fort street, on which the Company have buildings, in exchange for a lot of the same extent ai foot of Broujjhton street. I beg to assure your Grace that the Directors of this Compnny have no wish to throw any obstacles in the way of a settlementof the questions remaining unsettled with respect to their transfer of Vancouver Island. On the contrary, they are most anxious to second your Grace's wishes in that respect to the utmost of their power. It is with great pleasure, therefore, that I have to acquaint your Grace that my colleagues and myself are quite ready to do all in our power to settle the unadjusted matters on tho terms suggested in Mr. Fortescue's letter. On the part of the Hudson's Bay Company we are ready to surrender any right or title the Company may have in the lots marked in Mr. Mactavish's plan with the letter Z, as well as the lot 1603, on whish the Post Office ia built, and the iiwo lots adjoining thereto marked 1605 and 1607. We are also ready to surrender the lot at tho foot of Broughton street in exchange for the lot at the foot of Fort street, on which it was originally intended that the Harbor Master'.- Office should be built. In making these concessions, however, it must be understood that the Hudson's Bay Company surrendered only the rights which they actually possess, and that the arrangement is made subject to and saving the rights of third parties (if any) to whom the lots in question may have been already conveyed. As this is, as far as the Directors of this Company are aware, the only question which remained to be adjusted between the Crown and this Company, we saw no reason why steps should not bo at once taken for preparing the Deed of Keconveyance of Vancouver Island to the Crown. I have, &o., (Signed) EDMUND HEAD ,0 r, ..-ROIQIV & Colonial Secretary to Mr. Mactavibh. Colonial SicacTARY'a Office, November 12th, 1863. Sir, I am desired by the Governor to acquaint you, with referenoe to previous correspondence npon the subject of th( Reoonveyanco to the Crown of lands by the Hudson Bay Company, tbut with a view to a speedy settlement of tho question in dis- f)ute His Excellency proposed that the Crown on the one hand should give up a lot of and at tho foot of Fort street assigned to it by the Agreement of February, 1862, and that the Company on theother hand should surrender in exchange for it a lot at th^foot of Broughton street, and should also withdraw iheir claim to the portion of the Govern- ment Reserve marked Z on the plan submitted by you in your letter of the 20th July, 1862, and to the two lots in Govornmont street, adjacent to the Post Office I't. 2. Her Majesty's Principal Secretary of State for the Colonies having submitted this proposition to the Hcidson Bay Company, the Company have declared their readi- ness to surrender any rif^ht or title the Company may have in the lots marked in Mr. Mactavish's plan with the letter Z, as well as the lot 1603 on which tho Post Office i« built, and the two lots adjoining thereto marked 1605 ttnd 1607; and the Company arealsu ready to surrender the lot at the foot of Broughton street in exchange tor the lot at the foot of Fort street, on which it was originally intended that the Harbor Master's Office shoald be built, desitiog it, however, to be understood in making these concessions that the Company surrondor only the rights which they actually possess, and that the ar- rangement is made subject to and saving tho rights of third parties (if any) to whom the lots in question may have been already conveyed. 3. His Excellency therefore directs me to ask for a precise description of the land that will be coming to the Crown under this arrangement, and also whether you are empowered at once to make a formal conveyance of the same. I have, &c., (Signed) WILLIAM A. G. YOUNG. VicToaiA, Vancouver's Island, 2l8t November, 186:1 W. A. G. Young, Esq., Colonial Secretary. Sir, I beg to acknowledge receipt of your letter of the 12th inst., addrosscd to Mr. Maotavish, asking first for a precise description of the land tliat will be coming to' the Crown, under an arrangement stated in your letter to have been made between Her Majesty's Principal Secretary of State for the Colonies and the Hudson's Bay Company ; and secondly, whether Mr. Mautavish is empowered at once to make a formal convey- ance of the same. In ronlv to llii> Excellency's enquiry, 1 have the honor lo stivlo tliat tlie lands t<> como to the' Crown inulor tlic arrnn^'oniont you rofor to is, First, Lot marked and Uiiown iM No. 15 in biocU 70, on Mr. Maclavisi>'rt plan, submitted to Mis Excellency llif (Jovornor with his letter of July 'JDth, 18G2. Said lot is on the water side ol Wharf street, nt iho foot of Jlroughton street, and was originally reserved as a site for the Harbor Master's OiTico, being the lot intended to have been surrendered by tlie Indon. luro of ord i-'ebruary, l^ij'2, but which was therein erroneously described as situated at the foot of Fort Hlroot. . Second, Two lota on Governraont street, rc.ipeclively marked on the plan Noa. 1005 and 1007 and adjoining the lot marked No. JOOS, surrendered to the Crown in the Indontiye above mentioned, and designated in former correspondence in roteronce to lhi« subject as the Post Office lot. With regard to the lot marked Z on tlie plan, also mentioned in your letter, 1 h&vo very respectfully lo state that this lot cannot bo convoyed to the Crown for the reason that it has long since been sold to a third party whoso rights were distinctly reserved' (" saved ") by the terras of the arrangement referred to in your loiter un authorized under power of attorney, and arc ready at once to execute a formal coi cc of all the right and title of the Company therein. (Signed) I have, &c., AVILLIAM FliASEK TOLM IK ■ «j:«-!-vt* L till,' lands t" .'cl iind know" xcollcney lli'" side ot Wharf a site for llio li)' tlif Indcn- uri situated at dun NoH. ItiOf) Crown in the n reference to your letter, 1 Crown for the ,-cro dlHtinutlv Lir letter lUKler vcyance of the xcellcncy's ini- lludson's Bay > ready at once therein. 11 TOLMIK.