stefansson-wrangel-09-08-017-002

- 2 -

be developed and it was agreed that, while a general view might
be had of the lease given me already for southern Baffin Island
(the lease later turned over to the Hudson's Bay Reindeer Company),
the proposed lease of Wrangel Island might be a good deal more
liberal in view of the following points: (1) that we have already
spent a large amount of money on the enterprise, which money was
spent for public and patriotic purposes; (2) that Wrangel Island
is remote from markets and from that point of view not nearly so
desirable a lease as Baffin Island; (3) the size of Wrangel Island
is not more than about one-fortieth of the Baffin Island lease.

While the conditions of the lease be somewhat
modified, I understand they will be roughly as follows:

Our company gets a lease of Wrangel Island that shall
be free for fifteen years. For the fifteen years following that
there shall be a rental of $1,000. a year, and for twenty years
following that the company shall pay a rental that shall be arrived
at by arbitration at the end of the second fifteen-year period.

The lease stall confer on the company the following
privileges:

1. Exclusive rights for trapping or otherwise killing
foxes and polar bears;
2. Exclusive right to maintain stations on shore for
sealing, walrusing or fishing;
3. Privilege of grazing reindeer, ovibos or other suitable
grazing animls;
4. Privilege of erecting and controlling all buildings
necessary in connection with the operations of the company, includ-
ing harbor facilities and any facilities connected with the landing
or launching of aircraft and for storing supplies for ships, air-
craft, etc. The only exception is that the Government will have
the right to make any harbor improvements or erect structures that
may be deemed necessary for the direct or indirect use of the Gov-
ernment.

Vancouver is closer than any part of Canada to Wrangel
Island. What do you think of the possibility of getting capital in
Vancouver, either to finance our present company for the development
of Wrangel Island or to form another company to which we can sublet
Wrangel Island?

I was assured that we will get a favorable lease
within a month. Meantime, this matter must be very confidential,
for if it gets noised abroad in Vancouver that we are to get such
a concession there may be a protest from fur companies or even
from private citizens.

In my dealings with the Government I am making it