His Lordship desires me to add that, in case the terms suggested in this letter should be accepted by the parties concerned, Her l\Iajesty’s Government would be prepared to fulfil the expectations held out in Mr. Cardwelfs despatch of 17th June, 1865, and to propose to Parliament that the Imperial gaurantee should be given to a loan of £300,000, the sum which is proposed to be paid over by Canada to the’ Company on the transfer of the Com- pany’s rights.

As this is a matter in which the Company has no interest, it is not adverted to in my letter to Sir Stafford Northcote.

I am, Gentlemen, your most obedient Servant, (Signed) Fnsnmue ltoeaitzs. Sir G. E. Cartier, Bart, W. MacDougall, Esq.

Sir Stafford 17. Norlhcolc f0 Sir Frederic Rogers, Burr. Htmsorfs BAY House, Lennon, Min-Iraqi; 26th, 1869.

SIR,—-I have the honor to acknowledge your letter of the 22nd inst, transmitting, by Earl Granville's direction, a copy of a letter addressed to His Lordship by Sir George Car- tier and Mr. MacDougall, on the subject of my letter to yourself, dated the 13th ultimo.

The Committee of the Hudsoms Bay Company understand from your letter, that it is not Earl Granvillds wish that they should enter into a discussion of the communication from the Canadian Delegates, and they therefore refrain from making any comments upon its tone, or criticising and correcting its assertions. If there are any of those aissertions to which Earl Granville himself attaches weight, the Committee will gladly, on their being pointed out to them, offer such observations upon them as may appear to be necessary.

As regards the manner in which the Canadian delegates treat the suggestions contained in my letter of the 13th ultimo,—that the Canadian Government should complete the p11"- chase of the C0mpany’s territory at once, by the payment of a sum of money or by the delivery 0f bonds,—the Committee desire me to observe that they might have had some difliculty in gathering, from the terms in which the delegates express themselves, whether they were or were not prepared to entertain that suggestion, and to open a negotiation with this Company. But as Earl Granville, who has had personal communication with the dele- gates, is of opinion that their letter, taken in connection with previous correspondence, leaves little present hope of bringing matters to a settlement by way of compensation, the Commit- tee are forced to adopt the conclusion that it is intended as a virtual refusal on the part of the delegates to entertain the question in a serious spirit.

Should Earl Granville at any time come to the conclusion that it is desirable that. the Committee should renew the ofler of fully communicating with him on the subject of a money sale which they made in my letter of January 13th, they will hold themselves pre- pared to do so. For the present, and in accordance with what they gather to be his Lord~ ship’s views, they consider this matter at an end.

It becomes my duty, then, to answer Earl Granvillcs questions, (l) Whether the Conr- mittee have any objections, either of principle or of detail, to make to the counter-propo- sals” of Sir G. Cartier and Mr. MacDougall, and (2) What course the Company would pro. pose to take for securing that life and property are adequately protected, and international cgiligations duly performed in their Territory, so long as they remain responsible for its


With regard to the first of the two counter-proposals, viz., that the sovereignty of the whole of the Territory in question should be immediately transferred to the Dominion Government subject to the rights of the Company, the Committee desire to ask whether it is intended that the rights of the Company should be ascertained and defined before the transfer takes place, or after it. If the former be Earl Granville’s intention, the Committee have no kind of objection to offer to the proposal; but if it be meant that the transfer should take place first, and that the rights of the Company should then be made the subject of litigation in Canada, with a right of appeal to the Courts of this country, I must remark that such a course is likely’ to lead to much inconvenience, expense and annoyance to all pfl-Ities concerned, as well as to prove detrimental to the interests of the Settlement itself by