Hudson’s Bay Company surrenders Rupert’s Land Charter to Imperial Crown. The Northwest Territory and Rupert’s Land, become part of Canada, with the Hudson’s Bay Company surrendering its interest in Rupert’s Land to the Crown for 300,000 pounds (paid by Canada) and 5% of the settled lands, plus reserves around the trading posts, which in turn passed legislation Canada. The Company, in turn, would transfer its rights to the Imperial Government, which in turn would transfer those rights to the Dominion of Canada. Meanwhile, the First Nations who had long since occupied the area were not involved in making this arrangement. Indian nations claimed that the territory was theirs, that, in effect, it had not been the Company’s to sell.
The surrender specified that any claims of Indians to compensation for lands shall be attended to by the Canadian Government. The British Government in an exchange of letters at the time of the transfer of the NWT sought assurances that Canada would provide the Crown’s obligation to First Nations. The transfer from Crown to Canada was contingent upon Canada entering into treaties with the Indigenous Nations according to high British standards.