officers of the Company with such magisterial or other powers as might
conduce to the preservation of order and the security of the Company's
operations.

"With reference to the 9th and concluding Article, the Duke of
Newcastle would not willingly undertake the responsible functions
proposed to him, but he will agree to do so if by those means he can in
any degree facilitate the project, and if he finds that the Colonies
concur in the proposal.

"Subject to these observations, and to such questions of detail as
further consideration may elicit, the Duke of Newcastle cordially
approves of the Company's proposals, and is prepared to sanction the
grants of land contemplated in the 3rd Article. He intends to
communicate the scheme, with a copy of this letter, to the Governor-
General of Canada, and the Governor of Vancouver Island, recommending
the project to their attentive consideration.

"I am, Sir, your obedient Servant,
"C. FORTESCUE.
"E. W. WATKIN, Esq."




CHAPTER VIII.

_Negociations for Purchase of the Hudson's Bay
Property_.