Canada And The States Recollections 1851 To 1886 By Sir E. W. Watkin

























































































































































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                                         DOWNING STREET,
                                           1st May, 1863.

SIR,

I am directed by the Duke of Newcastle to state that he has had - Page 115
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"DOWNING STREET, "1st May, 1863.

"SIR, "I am directed by the Duke of Newcastle to state that he has had much satisfaction in receiving

Your letter of the 28th ultimo, enclosing the heads of a proposal for establishing telegraphic and postal communication between Lake Superior and New Westminster, through the agency of the Atlantic and Pacific Transit and Telegraph Company. These proposals call for some observations from his Grace.

"New Westminster is named as the Pacific terminus of the road and telegraph. His Grace takes for granted that if the Imperial Government and that of British Columbia should find on further inquiry that some other point on the coast would supply a more convenient terminus, the Company would be ready to adopt it.

"Article 1. - His Grace sees no objection to the grant of land contemplated in this Article, but the 'rights' stipulated for are so indeterminate that without further explanation they could scarcely be promised in the shape in which they are asked. He anticipates, however, no practical difficulty on this head.

"Nos. 1 and 2. - The Duke of Newcastle, on the part of British Columbia and Vancouver Island, sees no objection to the maximum rate of guarantee proposed by the Company, provided that the liability of the Colonies is clearly limited to 12,500l. per annum. Nor does he think it unfair that the Government guarantee should cover periods of temporary interruption from causes of an exceptional character, and over which the Company has no control.

"But he thinks it indispensable that the Colonies should be sufficiently secured against having to pay, for any lengthened period, an annual sum of 12,500l. without receiving the corresponding benefit, that is to say, the benefit of direct telegraphic communication between the seat of government in Canada and the coast of the Pacific.

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