With this great area, covering the present province of Ontario and the north central states of the American Republic, the Royal proclamation dealt as follows: ‘Whereas it is just and reasonable, and essential to our interest, and the security of our colonies, that the several nations or tribes of Indians, with whom we are connected, and who live under our protection, should not be molested or disturbed in the possession of such parts of our dominions and territories as, not having been ceded to or purchased by us, are reserved to them, or any of them, as their hunting grounds ... we do further declare it to be our Royal will and pleasure, for the present as aforesaid, to reserve under our sovereignty, protection, and dominion, for the use of the said Indians, all the lands and territories not included within the limits of our said three new governments, or within the limits of the territory granted to the Hudson’s Bay Company, as also all the lands and territories lying to the westward of the sources of the rivers which fall into the sea from the west and north-west as aforesaid; and we do hereby strictly forbid, on pain of our displeasure, all our loving subjects from making any purchases or settlements whatever, or taking possession of any of the lands above reserved, without our especial leave and licence for that purpose first obtained.’ Thus North America, outside the recognized limits of the old or new colonies, was for the time being constituted a great native reserve; and even within the limits of the colonies it was provided ‘that no private person do presume to make any purchase from the said Indians of any lands reserved to the said Indians within those parts of our colonies where we have thought proper to allow settlement: but that, if at any time any of the said Indians should be inclined to dispose of the said lands, the same shall be purchased only for us, in our name, at some public meeting or assembly of the said Indians, to be held for that purpose by the governor or commander-in-chief of our colony respectively within which they shall lie’. Trade with the Indians was to be free and open to all British subjects, but the traders were to take out licences, and, while no fees were to be charged for such licences, the traders were to give security that they would observe any regulations laid down for the benefit of the trade.[2] [Sidenote: Difficulties of the situation.]