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FENBTT, PKINTER TO THE QUEEN'S MOST EXCELLENT MAJESTY, 1864. niTfiTTmn'i'iiiiiiiii uiwmm / ;??:::??J|i^?^«;#ff^^r|^ti^^ - ■:,/. ^^M*^» ''< ^ I .',M. 1^ '. •f'^ "•• **ij'f »>Mt Cc-py of u Mtpi/rt (jf u CommUtcc uj the Ilonorublt (ht Ext-vuiict. Council^ apyrovid by His ExccUenoy the Goiernor General in Council oH (he 26th Feb. 1863. The Committee of the Executive Council having carefully CDnsiclorcd the Despatch of His Grace the Secretary of State for'the Colonies, of the 17th January last, in relation to the recent Inter-Colonial Kailway negotiations, beg to submit the following Memorandum iu reply thereto : — Your Excellency's advisers concur in the views urged upon the Imperial authorities by the Canadian Delegation who were lately in England. They also observe by the papers in their possession, that the Honorable Messieurs Howe and Til ley, although consenting as a last resort to accept the conditions proposed by the Lords of the Treasury, fully concurred in the objections entertained by tliis Government and its Delegates against tho proposed Sinking Fund. without entering into further discussion of the difieronce existing between the Imperial and Colonial proposals. Your Excellency's advisers consider it due to the Delegates from the other Provinces to call attention to their last Communications to the Colonial Office before leaving England, in " which " the hope is expressed that the Chancellor will reconsider the matter of the " Sinking Fund, and that the Colonies may be enabled to convince the " Imperial Government and Parliament, that under all the circumstances of '• this peculiar case, a Sinking Fund should not be insisted upon, and that " the Imperial authorities may bo induced to rely upon the honor and ample '• Revenues of the Provinces for the prompt payment of the instalments as " they become due." The Committee, upon a careful reconsideration of Canada's share in this whole negotiation from its commencement, upwards of twenty years ago, as well as from the nature of the stipulations and limitations of liability now first put forward by the Imperial Treasury, are of opinion that a more exact Survey than any yet made is indispensable, in order to ascertain the proxi- mate cost of the Road before a final decision or legislation can be had on the different proposals of the Imperial and Colonial Governments. The Honorable Mr. Tilley made known in London to the Imperial Gov- ernment and the other Delegates, that he had instructions not to pledge New Brunswick to a greater expenditure for the whole Road than three millions and a half, and that if the estimated amount was to exceed that sum, he would have to submit the whole question again to his Government. The last Imperial proposal restricted the Imperial guarantee of interest to a Capital of three millions sterling, and even this guarantee was not to be asked of the Imperial Government until the sufficiency of the Colonial Revenues to meet the charges to be imposed upon them was established to the satisfaction of the Treasury, until the route and surveys had been sub- mitted to and approved by the Imperial Government, and until it could be shewn to the satisfaction of Her Majesty's Government that the whole work could be done without application for an Imperial guarantee over and above that to be given on j;hree millions sterling. As the Survey might establish the fact that the Road would cost more than three or three and one half millions ; and as in that event further con- ferences would be necessary with the Imperial Government and the other Provinces, Your Excellency's advisers have agreed that an appropriatiom ■n m wmmm*'^ '■■' ;j/'v, Vi' 'vl>' shall be u8k<;d from the Legisluiure of (.'unucla in tin.- piosent Scs-siuii, lor the purpose of making such a Survey us is lucfssury to the final (ietenui- nation of the several proposals. They have acquainted the other Provinces of their detenniuution in thin respect, in a conference had with the Honorable Mr. Tilley last month at Quebec, and they are gratified to learn since, that His Grace the Duke of Newcastle is prepared to appoint an Imperial Officer to co-operate with those of the Provinces for the joint Survey. The reasons, Imperial and Colonial, political and Military, in favor of the project itself, have been so often urged upon the consideration of Her Majesty's Government, that it is unnecessary to recapitulate them. The Committee, however, beg to cite here the last testimony on behalf of the Inter-Colonial Eoad as a necessary measure of Colonial defence, which they find in the Report of the Royal Commission on the defence of this Province, recently presented to Your Excellency. After noticing the existing means of communication between Canada and England during the season when the navigation is closed, and pronouncing tho present line of com- munication to be " not available during hostilities," the Commissioners con- clude by expressing their hope "that some arrangements will soon be come " to, through which an undertaking so important to the British North " American Provinces as the Quebec and Halifax Railway, may be carried " out." Your Excellency's advisers have full confidence that the Government and Parliament of Great Britain will grant the proposed guarantee of interest on the most liberal terms, in consideration of the importance of this great work, as a measure of defence and a means of extending and securing the political and commercial influence of England over an immense territory, extending from the Atlantic to tb e Pacific. (Certified.) (Signed) Wm. H. Lek, C. E. C. mm^^ it St's-iion, lor' tinul detenni- liDutiou ill thirt ■ last month at ce the Duke of srate with those , in favor of the cration of Her them. )ny on behalf oi defence, which defence of this 31 ng the existing ring the season ent line of com- nmissioners con- ill soon be come e British North ', may be carried Government and •antee of interest nee of this great md securing the amense territory, . Leb, C. E. C I CORRESPONDENCE RELATING TO THE INTERCOLONIAL RAILWAY. LAID BEFORE THE LEGISLATURE BY COMMAND OF HIS EXCELLENCE THE LIEUTENANT GOVERNOR. [In continuation of Corretpondence laid before the Legislature in 1863.} FREDERICTON. ! a. E. FENEIT, PRINTER TO THE QUEEN'S MOST EXCELLENT MAJESTT. 1864. ^^m. T My Lc the pnper for tlio cc In con has been Mr, Sicot that gentl '* content *' admits t I do no therefore '• tSur c '* colonial It is pof report be ; venture to reached Y It is th( measure ii of the Bril posals are ; of Her Ml lour Exce templatcd. The Stat with it an a I have rece: drawn from ultimo, mu! and I am tl think prope this Provin Hii j;xcell«n( FURTHER CORRESPONDENCE RELATING TO tv I'HE INTER-COLONIAL RAILWAY. No. 1. The LicMitenunt Governor to tlie Governor General of Canada. Frrdericton, I9th March, 1863. My Loan, — I have the honor to enclose, for Your Excellency's information, a copy of the papers laid before the Legislature of this Province, on the subject of the negotiations for the completion of the Intcr-Colonial Railroad. In connection with this subject, 1 wish to inform Your Excellency that my attention has been called tu the report of a speech mitde in the Parliament of Canada by the Hon. Mr. Sicotte, a member of Your Excellency's Ciovemment, on the liOth ultimo, in which that gentleman is suid to have made use of the following words : — " On this point I will " content myself with saying that a Despatch received to-day from th« Colonial Office •' admits that thn objections taken by the Delegates are just and correct." I do not know whether Mr. Sicotte spoke in the English or French language, and I therefore also give the report contained in the Journal 0)<|Kit('liort wliU'li 1 h;ivo bud (locxsiori to luLlrcsH to Lord MdUfk in tiio courne of tbo prcsont year, about tbo intor-C'olonlal Uiiilway. ( bav« no \\\i^\\ to produce those Do.HpiitohcM without ttde(|uato occasion, or to lay iiiiy unnecofisnry i*tre.>tate for the Colonies to the Governor General of Canada. Doinihu/ Street, 29t7i January, 1863. Mv Lord, — 'With reference to my Despatch, No. 4, of the 17th January, I transmit to you herewith a Copy of a Minute by the Secretary to the Treasury upon two questions raised in the annexed letter from Mr. Tilley, the New Brunswick Delegate, on the subject of the proposed loan for the construction of the Inter-Colonial Railway, viz : the mode in which the loan should be raised, and the extent to which it should form a first charge on the Provincial Revenue. I. have, &c. (Signed) Newcastle. Governor tlio \'isooiint Monck, &"<•. &o. iVc. Xo. 5. The Lieutenant Governor to the Secretary of State for the Colonies. Frcdcrieton, March 30, 1863. My Lord Dlki:. — T have the honor to enclose for Your Grace's information copies of a Rill introduced into the House of Assembly by the Provincial Secretary on the 20th instant, for the purpose of giving effect to the agreement entered into with the Imperial Government respecting the construction of an Inter-Colonial Railway. 2. A strong opposition is offered to this measure, but I entertain no doubt whatever that it will be carried by a large majority. 3. A vacancy has lately occurred in the Representation of Saint John, owing to the death of one of the members from that place. The consociuent election has just terminated in the triumphant return by a majority of nearly two to one of the Hon. J, H. Gray, who is pledged to support the Bill now before the House. 4. As both the Candidates on this occasion were of the same political ]iarty, and as the election entirely turned on the question of support or ojtposition to the present Railway Hcheme, and especially that portion of it which reserves the approval of the Route to the Imperial Government, the decision of the large and important constituency of Saint John on this' subject, may be considered to have been clearly pronounced ; and I think Your Grace would not be wrong in considering it an indication of the general feeling throughout the Province on this question. 5. Such an expression of opinion on the part of the most numerous, wealthy, and intel- ligent constituency in the Province, cannot fail greatly to weaken the force of any opposition which may be offered to the measure in the Provincial Legislature. (Signed) His Grace tlje Duk* o( i\'(;wcaitle, K. G., &c. &c. icti. T have. kc. ■ I Tl Lieut. Tl Arthur H. Gordon. INTER-COLONlAL KAILAVAY. as the [ailway to the John Your ighout '; No. 6. The Secretan* of State for the Colonies to the Lieutenant Governor, Downing Sfrecf, 23rrZ April, 1863, [ received May 15. ] Sir, — 1 have the honor to acknowledge the receipt of your Despatch of the 20th of March, enclosing copies of a Bill which had been introduced into the House of Assembly of New Brunswick, et Itled " A Bill to authorize a Loan, and for the construction and management of an Inter-Colonial Railway." I have, &c. (jSignedj Newcasti.e. Lieut. Governor Hon. Arthur Uordon, tVc. iSce. &c. No. 7. The Lieutenant Goternor to the Secretary of State for the Colonies. Frcdcriclov, 27 fh April, 1863. My Lord Duke, — It is with great satisfaction that I transmit to Your Grace a copy of the Bill to authorize a Loan, and for the completion and management of an Inter-Colonial Railway, as finally assented to by me on the 20th instant. 2. The Bill passed through all its stages iu the House of Assembly by considerable majorities, and in the Legislative Council only two votes were recorded against it. 3. So far as this Province is concerned, no more can at present be done towards the com- pletion of this great work ; but I earnestly trust that the Government of Canada may, before long, be induced to perceive the necessity of fulfilling their part of the agreement entered into between the diflferent Provinces in September 1862. I have, &c. (Signed) Arthur H. Gordon. His Grace the Duke of Newcastle, K.Q., Sec. 6cc. ice. No. 8. The Lieutenant Governor of Nova Scotia to the Lieutenant Governor. Government House, Halifax, 29th April, 1863, [ received May 5. ] Sir, — I have the honor to inform you that I have this day given my assent to an Act passed by the Legislature of this Province, accepting the terms ofiFered by Her Majesty's Government for the construction of an Inter-Colonial Railroad, and I now enclose the Copy of a Minute of my Executive Council, together with a Copy of the Bill which has been passed. I have, &c. (Signed) Mulqravb. Lieut. GoTernor Hon. Arthur Gordon, &c. &c. iO.\. [ Enclosure. ] CouncU Chamber, ilali/ax, N. S., 29th April, 1863 PRESENT : The Honorable the President of the Council, Attorney General, Solicitor General, Receiver General, Mr. Wier, Financial Secretary mmmmm immmm mm* INTER-COLONIAL RAILWAY. The members of the Executive Council of Nova Scotia .'aving liad under consideration an Act, entitled " An Act to authorize a loan for the construction and management of an luter-Coloniul Railway," which has now passed into law, a copy whereof accompanies this minute, desires to call the special attention of His Excellency the Lieutenant (jovernor to the same, and to request that coi)ies be forthwith despatched to His Graco the Duke of Newcastle, Principal Secretary of State for the Colonie-*, to the (Jovernor General of Canada, and to the Lieutenant Governor of New Brunswick. It is peculiarly gratifying to the nieinbors of the Executive Council of Nova Scotia to be in a position thus to assure His Grace the Duke of Nev.'castle, as well as the Governor General of Canada and the Lieutenant Governor of New Brunswick, and through the latter the members of their respective administrations, that the I^egislature of Nova Scotia has now honorably redeemed the pledges given by the Provincial Delegates at the conven- tion held in Quebec, in September, 1862, in relation to this subject, as well aa the assurance subsequently aiforded by the Honorable Mr. Howe to the Principal Secretary of State for the Colonies, that the guarantee offered by the British Government in relation to this matter would be accepted by the Lcgi-slature of Nova Scotia. No. 0. The Lieutenant Governor to the Secretary of State for the Colonies. Fredericton, 11th May, 1863. My Loed Duke, — I have the honor to acknowledge the receipt of Your Grace's Despatch of the 18th ult, and to express my thanks for the copies of Your Grace's Despatches to the Governor General of Canada therein contained. 2. The Bill for the completion of the Inter-Colonial Railway having been already passed by the Legislature of New Brunswick, it appeared to mo that nothing would be at present gained by making public use of these papers, whilst their publication could hardly fail to be distasteful to the Canadian Government. At the same time, I beg to thank Your Grace for the permission given me to publish them, of which I should not have hesitated to avail myself had the circumstances seemed to render it desirable. I have, &c. (Signed) Autiiue H. Gordon. His Grace the Duke of Newcastle, K. G., &c. &c. &c. No. 10. The Secretary of State for the Colonies to the Lieutenant Governor. Downing Street, 16t7i May, 1863, [ received May 28. ] Sir, — I have the honor to acknowledge the receipt of your Despatch of the 27th ultimo, enclosing a Copy of the Bill to which you had assented, " To authorise a Loan, &c. for the construction and management of an Inter-Colonial Railway." The readiness of the Legis- lature of New Brunswick to forward the work of an Inter-Colonial Railway has afforded much satisfaction to Her Majesty's Government. (Signed) Lieut. Governor Hon. Arthur Gordon. I have, &c. . Newcastle. No. 11. The Governor General of Canada to the Lieutenant Governor. Quebec, 6th July, 1863, [ received July 14. ] Sir, — I hare the honor to enclose an approved minute of ray Executive Council on the subject of the suryey of the line of the proposed Inter-Colonial Railway. : 2 10 iNTER-COLUXIAL RAILWAY. Xo. 13. The Governor General of Canada to the Lieutenant Governor. Quch'c, 2Q th Jit/f/, 1SG3. Sir, — I have the lionor to acknowledge the receipt of your Despatch of the IGth instant, iuforming me that the Minute of tlic Ca))ailian Government on the subject of the Survey of the line of the proposed Inter-Colonial Hallway will receive your attention, and that of your Executive Council. 1 have, &C. (Signed) MoNCK. Lieut. Govcrnur IIonorHhl'; Artlmr (j'ordon, &c. &;c. tVc. I 1 aftuall for the to legis TlK Xo. 14. The Lieutenant Governor to tlie Secretary of State for the Colonics. Frcdericton, 20th Jul//, 18G3. My Lord Duke, — I was much surprised to receive an official letter a short time ago from the Governor General of Canada requesting to know what sum this Province would appropriate for the Survey of the Inter-Colonial Railway, and whether this Government was prepared to appoint an Engineer to the Commisyion for taking that survey. 2. As those members of the Canadian Government who retired from Office rather than take part in any scheme for the completion of the Inter-Colonial Railway have now resumed their posts, on the express understanding, as they are reported to have publicly declared, that this undertaking was altogether abandoned by the Canadian Government; and as the members of the present Canadian Cabinet are said, (unless they are much misrepresented,) to have stated at the hustings at the late elections that v'he scheme had been entirely relinquished, this communication has naturally seemed, both to myself and to my Council, to be one of a somewhat unexpected character. My Government is in communication with that of Nova Scotia on the subject, and meanwhile I have returned the answer, of which I have the honor to enclose a Copy. I have, &c. (Signed) Arthur II. Gordon. His Gr.icc the Duke of Newcastle, K. G., &c. &c. (fee. [ Enclosure. — See No. 12. ] No. 15. The Lieutenant Governor to the Secretary of State for the Colonies. Fredcrkton, Jn^i/ 29th, 1803. My Lord Duke, — In my Despatch of the 20th inst., I informed Your Grace of the proposition made by the Canadian Government for the survey of the line of the proposed Inter-Colonial Railroad. 2. Communications have taken place on this subject with the Government of Nova Scotia; and although no formal decision has yet been taken, I am able pretty confidently to assure Your Grace, that the proposal of the Canadian Government will be acviepted by those of the Lower Provinces, notwithstanding the difficulties which attend the adoption of such a course. 3. These difficulties, however, are neither few nor small ; — for not only will any czpendi< ture on the survey, if incurred this year, be incurred without the sanction of a vote of the Provincial Legislatures, but as the agreement signed at Quebec, in September, 1862, ■^m 1 INTER-COLONIAL HAIL WAY. 11 lor. uli/, 1.SG3. IGtli instant, the Survey , and that of MONCK. ilonics. ily, 18t)3. jrt time ago vinco would Grovcrnmcnt rather than low resumed ily declared, ; and as the sprcscntcd,) jen entirely ny Council, ication with , of which Gordon. onies. 'h, 18G3. ace of the e proposed it of Nova oonfidently cviepted by e adoption y cxpendi- a vote of iber, 1862, actually forms part of the Act passed last winter, both in this Province and Nova Scotia; lor the construction of the Inter-Colonial Railroad, the commencement of a survey previous to legislation, will be in direct contravention of the express provisions of that law. T have, tto. AuTirjiR II. (Gordon. No. 16. The Lieutenant Govcruor of Nova Scotia to the Lieutenant Governor. Ci/veritmeiit Jfouse, Ilali/ax, Gth Au(/vxt, 18G3, [^rrrcivn/ Aii(/. 13.] Sir, — I have the honor herewith to enclose for your ]']xccllency's information the copy of a Minute of my Executive Council, in which they express their willingness to undertake a Joint Survey for the proposed Inter-Colonial Kailroad. I have, (tc. (Signed) RIulqrave. His Excellency the Hon. Arthur Gordon. [ Enclosure. ] The undersigned Members of the Executive Council, having carefully considered the Report of a Committee of the Honorable the Executive Council of Canada, proposing to join the Imperial (jrovcruraennt and the Governmenta of Nova Scotia and New Brunswick, in a survey for an Inter-Colonial Railway, and having examined the Minute of Council of the Canadian Government of the 25th February last, in relation to the Inter-Colonial Railway, to which their attention was invited, fully concurring in the reasons therein urged in favor of the proposed survey, are of opinion that it is highly desirable that this survey should be entered upon and completed with as little delay as possible, and therefore respectfully request Your Excellency t>) communicate to the Government of Canada their readiness at once to engage in that undertaking. The undersigned further respectfully recommend that a copy of this minute be trans- mitted to His Grace the Duke of Newcastle, and also to the Lieutenant Governor of New Brunswick. Signed, J. W. Jounston, Charlks Tupper, W. A. Henry, James McNaij, Isaac Le Vesconte, John McKinnon, Alexander MacFarlane. John Creiouton, S. L. Shannon. Halifax, Norn IScotla, July 2dth, 1863. No. 17. The Lieutenant Governor to the Governor General of Canada. Camp on the Ncpisiguit Riier, New Brunsioich, IQth August, 1863. My Lord, — I have now at length the honor to reply decidedly to the proposal that the survey of a line for the Inter-Colonial Railway should be at once proceeded with ; and I beg to inform Your Excellency that, after a full and anxious consideration of the question io all its bearings, I have resolved on the advice of my Executive Council to accede to the proposal contained io Your Excellency's despatch of the 6th July. V. INTER-COLONIAL RAILWAY. So many difficulties, Lowevcr, attend any departure from the agreement already entered into between Canada, Nova Scotia and New Brunswick on this subject, — and wliich agree- ment, by being annexed to the Act passed by the Legislature of this Province during the late Session, has here the force of law, — that I have thought it expedient to despatch a member of my tiovernment to Quebec, for the purpose of more fully arranging tlie detailn of the proposed survey ■with the advisers of Your Kxcelleney. I have, &c. (Signed") Anniuu IL Goudon. Ill's Excellency tlie ViscoiiiU Monc?;, iVe. iVc. iVc. No. 18. The Lientcuaiit Govevnor to the Lieutenant Governor of Nova Scotia. Bathurst, N. B., A7i;/iist 20, 18G3. My Lord, — I have the honor to acknowledge the receipt of Your Lordship's Despatch of 6th inst., and in reply beg to transmit for Y'our Lordship's information, the copy of a letter which I have recently addressed to Ilis Excellency the Governor General of Canada. I have, &c. (Signed) AuTiiuii 11. Gohpon. Ilis Excellency the Jlarquis ol'Normanhv, {cc. ice. iVc. [Enclosure — See preceding Despatch. ] To His No. 19. The Lieutenant Governor to the Secretary of State for tlie Colonies. Newcastle, N. B., Anyust 2dth, 1863. My Lord Duke, — In my Despatch of July 20th, I informed Your Grace of the pro- posal made by the Government of Canada to New Brunswick and Nova Scotia to com- mence the survey for the Inter-Colonial Railway, previous to any Legislation by Canada on the subject. 2. As the agreement entered into between Canada and the Lower Provinces in Septem- ber 1862, has in this Province and in Nova Scotia been invested by the Legislature with the force of law, and as that agreement provides in express terms that the survey shall only be commenced after legislation by all the Provinces, it is very difficult to comply with the request of the Canadian Government. 3. Nevertheless, I am of opinion, — and in this opinion I am happy to say, my Council and the Government of Nova Scotia concur, — that it would be impolitic to reject the over- ture thus made, or to appear to aiford any ground, however slight, for the abandonment by the Canadian Government of the obligations which they have voluntarily contracted. 4. I have, therefore, addresed the letter, of which I have the honor to enclose a Copy, to the Governor General of Canada. 5. I observe, however, with great regret that a leading Member of the Canadian Govern- ment, — the Hon. Mr. Dorion, — is reported to have said that whilst he did not object to a survey, the question of the construction of the Railway itself, and of the share which Canada sheuld bear in such a construction, was to be treated as being, in fact, a new question, to be taken up or abandoned as circumstances might dictate. I can hardly bring myself to believe that a responsible Minister of the Crown has thus spoken of a solemn written engagement, voluntarily entered into and confirmed to these Provinces on the part of Canada by the signature and approval of Her Majesty's Representative and Governor INTKR-COLONIAL RAILAVAY. i:J uly entered liich ngroe- durinf^ tlio despatch a the detailri jiORDON. Octicral. It i8 my duty iiiiociuivocally to stiito to Your (Jraco that, if Caiiiida repudiates her oblijjatiou to pay 5-12th.s of the cost of the proposed line, it will be iieceagary for the Lower Provinces, however roluttaiitly, to rolincjuish all participation in tha proposed undertaking. T have, &c. (Signed) To His Grace the Dnli« nCNewcn.stle, K. G., \-e. \'c. iVrc. [ Enclosure— See No. 17. ] Arthur II. Cordon. Scotia. :G, 18G3. s Despatch ! copy of a of Canada. jORPON. onies. h, 18G3. if the pro- tia to coni- by Canada n Septeni- iture with irvey shall »niply with ly Council the over- ndoninent tractod. 3e a Copy, n Govern- )bject to u ire which ict, a new rdly bring ' a solemn 1 the part Governor \ No. 20. The Governor General of Canada to tlio Lieutenant Governor. Gincrnmi'itt llonsf, Qiuhtr, 2(j(h Auijust, 1803. Sir, — I have the honor to enclose, for Your Excellency's information, a copy of an approved minute of the Executive Council of Canada, appointing Mr. Sandford Fleming, C. E., to conduct, on the part of the Government of Canada, the proposed survey of the line of the Inter-Colonial Railway. I have also to state that ?>Ir. Fleming is prepared to commence operations so soon as Your Excellency's Government and that of Nova Scotia shall have appointed engineers to co- operate with him. I send a despatch, identical with this, to the Lieutenant Governor of Nova Scotia; and I would suggest that Your Excellency should communicate with Lord Normanby, in order that so soon as the necessary appointments shall have been made I may be informed to what place it is expedient Mr. Fleming should repair to meet his colleagues in the survey. I have, &c. (Signed) Monck. The Honorable Arthur H. Gordon, &c. Jcc. dec. No. 21. The Secretary of State for the Colonies to the Lieutenant Governor. Doirnlny i^trcc/, 20/7t Axujiist, 1863, \^rec<'ivcd Septcmhcr 5.] Sir, — I have the honor to acknowledge the receipt of your Despatch of the 29th July, relative to the contemplated survey of the line of the proposed Inter-Colonial Railway. I have, &.G. (Signed) Newcastle. The Honorable Arthur H. Gordon, Arc, \'c. cVc. No. 22. Secretary of State for the Colonies to the Lieutenant Governor. Downing Street, 2dth August, 18()3, \^received Scptemher 17. ] Sir, — I have the honor to acknowledge the receipt of your Despatch of the 20th of July, and to express my approval of the answer which you returned to the Governor of Canada on the subject of the survey of the line for the Inter-Colonial Railway. I have, &c. (Signed) Nkwcasti-e. The Honorable Arthur H. Gordon, iVc. &c. iVc. ■f 14 INTEll-COLONIAL RAILWAY. ii No. 23. The Lientciuuit (}ov(M'iio]' to the (Jovcrnor Ooiicral of Caiiatlu. Ftrf?cn'(f»v, llf/i Srptimhc); ISO.'J. ^Iy liOiin. — I hiivc till! Imiior tu tmismit to Your Kxccllcncy the iicfoinpiuiyin^ copy vi'ii 3Iiimtc of my ExoL-ntivo {.'otuicil j)re.Hcntcil to uio to-day. I readily assent to the adoption of tlie course rocoiiinieiideJ by this Minute, and entirely concur in the hoi)e therein expressed, that no further departure from the terms of the agreement entered into hy the three Provinces, will ho liereafter proposed by Your Kxcel- leney's advisers. I have the honor t(» l)e, &c. (Signed) AnTiini II, (jordox. His Excolleiicy the Visi'oiiiit Moiiok, iVc. iVc. Arc. [ End osure ] Minute of the Executive Council in Coinniittco. To His Excellency the Ilonorahlo Arthur Ilaniilton Gordon, C.M.G., &c. &c. &e. In recommending Your I'lxcelleney to appoint, in conjunction with the Government of Nova Scotia, an Engineer to make the preliminary exploration and Survey of the line of the proposed IJaihvay, previous to the passing of the Kailway Bill of the Canadian Legis- lature, wc are aware that we are not adhering strictly to tlie arrangements agreed upon at tjuel)ec by the Representatives of the three I'rovinces in September last, and subse. <[uently cijnlirmed by Her Majesty's llepre.-ientative in each, which provided that no Surveys should be authorized until the necessary legislation should be had by the several Colonies, and Joint Commissioners appointed. As such previous Survey, however, is desired by the Canadian Government, they bearing five-twelfths of the cost, we are induced to advise Your ExccUenoy to make the necessary appointment for that purpose, in full faith that no other departure from the compact entered into will bo proposed ; and that the construction of the Railway, if found practicable, will be undertaken upon the basis of that agreement. Wc respectfully recommend that a copy of this Minute be transmitted to the Governor (Jeneral of Canada. S. Ii. TiLLKY, W. II. Stkkves, CiiAs. Watters, V. Mitchell, John M'Millan, James Steadman, G. L. Hath E WAY, Ki-ccu'.in: Cunnv!/ Clunnlvr, 2{ith Sept. ISC". Wm. E. Perley. I t,! the In ova S Xo. 24. The Lieutenant Governor to the Secretary of State for the Colonies. Fredericton, ^'eptemlcr 2Sth, 1863. My Lord Duke, — In my Despatch of August 29th, I informed Your Grace that I had assented to the proposal made by the Canadian Government for an immediate survey of the line of the proposed Inter-Colonial Railroad, although such a course was, strictly .speaking, inconsistent with the engagements entered into between the British North American Provinces in September, 1802, and contrary to the provisions of tlie acts relative '^^is^f^^^^mmmm^m^ INTER-COLONIAL RAILWAY. 16 la. i; 180:}. i^'in-: copy 1(1 entirely I'liiH of the uur lOxcel- OIIDON, :c. iSl'c. ;rniiicnt of the lino of lian Legis- ;i'ee(l upon and subse. tl that no ;he several 3y hearing necessary J compact icticahle, Governor ■£8, EHS, r,AN, )MAN, :WAY, ova Scotia. 2. ]n the .same Despatch T expressed my surprise and concern at the language said to have been held in the Canadian I'arliament by Hon. Mr. Dorion ; and informed Your Grace tliat n repudiation by Ciinada of the share which she had voluntarily taken upon herself of the liabilities to be incurred in the construction of the road, must necessarily involve the entire abandonment of this important work. 3 The Provincial Secretary of this Province, lion. S. L. Tilley, together with the Provincial Secretary of Nova Scotia, were at that time on their way to Quebec for the purpose of arranging the details connected with the commencement of the Survey, and I felt that on their learning what was said to have fallen from Mr. Dorion, they might probably be disposed to abandon further negotiation. This it appeared to uie would be exactly that which would be most desired by the Canadian Government, supposing them to be anxious to escape from their obligations ; and I accordingly wrote to Mr. Tilley to the effect that, whilst 1 thought that if the Canadian Government as a body repudiated the engagements of September, 18ti2, or refused to bear five-twelfths of the expenses of the Survey, he would have no alternative but to refuse to take any further step, and should return here immediately ; yet, on the other hand, I saw advantages in pledging the Canadian Cabinet to the practical adoption of the share of expenditure contemptated in the original agreement, and urged that the arrangements should proceed so long as it was possible to assume that the Government of Canada intended as a Government to respect the engagements into which it had entered. 4. 3Ir. Tilley entirely coincided in the opinions thus expressed, and on his return in- formed me that the Canadian Cabinet was willing, according to the original agreement, to bear five-twelfths of the expenses of the Survey, and had not expressed as a Government any intention of departing from the other provisions of the agreement of 1862, although they had not given any further assurances on that head. He also informed me that Mr. Dorion denied having used " exactly" the language attributed to him, and observed that it did not, as reported, convey his precise meaning on the subject of the Railway. Wha' that meaning was I am not aware whether Mr. Dorion has been pressed to state. 5. In such a state of things, some members of the Canadian Government absolutely repudiating, and others hesitating to acknowledge the obligations of September, 1862, it js not surprising that there should have existed a great reluctance on the part of many members of my Council to enter on the proposed Survey. Nevertheless I felt that such hesitation, though by no means unnatural, was shortsighted. If it were the desire of the Canadian Government that the negotiations should fail, they would rejoice to throw the blame of failure on the Lower Provinces, just as last year they sought to throw the blame on Her Majesty's Government — whilst if the Survey proceeded on the basis agreed upon, it would be very difficult for the Canadian Government subsequently to evade the obliga- tion to bear a similar proportion of the expense of constructing the road ; that which is a fair proportion in one ease being evidently a fair proportion in the other. Nor did I fail to point out that the principle of the Survey preceding legislation in Canada having been conceded by my letter to the Governor General of the 20th August, (transmitted to Your Grace in my Despatch of August 29th,) it was now too late to break off negotiations on that ground. It was perfectly competent to New Brunswick to have declined, in the first instance, to depart from the engagements of 1862, confirmed as they have been by subse- quent legislation ; but, having once consented to do so, it was impossible now to draw back, except on the ground that we believed the Canadian Government to be acting in bad faith, m>m^ 16 INTER-COLONIAL RAILWAY. which could hardly bo asserted without stronger proofs than any yet in our possession. Again, the abandonment of tho schcmo at this moment would practically have been its abandonment for an indefinite time, owing to tho peculiar position of the Nova Scotia Government. Wore the negotiations for completing tho Intcr-Colouial Railway suspended, that Government would be unable to resist the pressure for the commencement of Railways within tho Province, which, if once undertaken, would swallow up all tho funds of that Colony available for Railway purposes. I was also a good deal influenced by considerations affecting tho position of the existing Canadian Government, with which I need not now trouble Your Grace. 6. I am happy to say that these views ultimately prevailed, and that all the members of my Council present in Fredericton signed the Minute of which I have the honor to enclose a copy. I have also the honor to transmit for Your Grace's information a copy of a letter which I have addressed to the Governor General, in forwarding to him tho Minute in question. I have, &c. (Signed) Arthur H. Gordon. To His Grace the Duke of Newcastle, K. G., dec. &c. &c [ Enclosure. — See preceding Despatch. ] No. 25. The Lieut. Governor to the Administrator of the Government of Nova Scotia. Freiiericton, 1st October, 1863. Sir, — I have the honor to transmit to you the copy of a letter which I have recently addressed to His Excellency the Governor General of Canada. I regret that this document was through inadvertence not sent to Your Excellency at an earlier date. 1 have, &o. (Signed) Arthur H. Gordon. His Excellency the Administrator of the Government, Nova Scotia. [ Enclosure— See No. 23. ] No. 26. The Governor General of Canada to the Lieutenant Governor. Quebec, 29(h September, 1863. Sir, — I have the honor to enclose a copy of a 3Iinute of tho Executive Council of Canada on the subject of your Despatch of the 18th inst. I have, &c. (Signed) MoNCK. The Honorable Arthur Gordon, &c. &c. &c. [ Enclosure. ] Minute of the Executive Council of Canada. The Committee of the Executive Council having had referred to them the Despatch of the 18th inst., of His Excellency the Lieutenant Governor of New Brunswick, transmitting copy of a Minute of his Executive Council on the subject of the contemplated Survey for an Inter-Colonial Railway, have the honor to submit for Your Excellency's consideration the following observations in relation thereto : — ,v.^iS>wi*|fltl«'S!H!i ' ^^^^^^^^^^^^^i^i^^gk^^m^y^mm INTER-COLOXIAL RAILWAY. 17 possession. Lvo been its »Iova Scotia suspended, af lluilways mds of that isidcrationa 3d not now members of le honor to •n a copy of the Minute GOUDON. )va Scotia. \ ier, 1863. ,ve recently is document Gordon. or. er, 1863. !]ouncil of MONCK. •espatch of ■ansmitting Survey for nsideration The Conimittco find that whilst tho Kxccutivo Council ol' New Iliunswick advise the appointment of a Suivcyor to net in conjunction with tho Surveyor appointed by this Province to conduct the proposed Survey, they would seem to fiualify tho rcconinicndation !iy asHociatinu' with it a iiopc that tho Survey beinj* acconipli.Hlicd, tho basis aj^rccd upon by tho ('invention li. '1 in Sopteuiber 1802, will be adhered to, if tlic construction of tho llaihvay be horcaflor iimnd practicable, Tho Committee learn with pleasure that so far ns the Survey is conccvncd their plans are cordially acquiesced in by the Executive of New Brunswick, and they look forward with satisfaction to the cdnsunnnation of tho important undertakinp,- of which the Survey is the preliminary step. In order that there may be no misapprehension, however, between the Governments of the Provinces having a common interest in tho matter, tho CoDimittec think it right to call to mind the manner in which the negotiations conducted in London terminated, and the general position in which the question of an Inter-Colonial Railway at present stands in this Province. The Conimittco would remind Your Excellency that Iho conditions proposed by tho Imperial Government in connection with tho assistance to bo rendered towards the con- struction of the Railway, difl'ercd in some important particulars from the agreement of September 1802, and from the instructions which the Delegates sent on tho part of Canada were charged to carry into clTect. The Committee may refer to the distinct refusal on the part of the Imperial Govern- ment, to regard tho contribution which Canada might make to tho Intcr-Colonial Railway, as being to that extent an expenditure for defensive purposes, the proposed Sinking Fund, and to tho conditions set forth, in tho ninth of the scries of propositions presented by the Imperial Government. " Parliament not to be asked for the guarantee until the line and surveys shall have " been submitted to and approved by Iler 3Iajesty's Government, and until it shall have " been shewn to the satisfaction of Her IMajcsty's Government that the line can be con- " structed without further application for an Imperial guarantee." The Imperial Government thus making the propcsed assistance by way of loan, contin- gent upon the result of a previous survey, ostab!i^•bing the suiTiciency of the guarantee for the full purposes for which it was to be granted. The Delegates were therefore con- strained to decline the acceptance of a proposal fettered by conditions so much at variance with their instructions, and their decision received the approval of their colleagues as being in harmony with the spirit of the agreement arrived at by tho Quebec Convention, and in entire conformity with the unequivocal tone of public opinion in this Province. The negotiations founded upon the understanding entered into by the Convention of September 1862, were regarded as terminated with the return of the Delegates to this Province ; and it was hoped that the Report of this Council of 25th February last, would have suflSced to prevent niisconcoption as to the necessary abandonment of the basis upon which the negotiations up to that time had been founded, and to .shew that any further acti.)n by the Government of this Province must be the subject of subsequent consideration. It is further to be observed that the carrying out of the agreement of September, 1802, necessarily depended upon the success of the negociations with the Imperial Government, and tho assent of the Legislatures of the three Provinces being obtained. These nego- tiations having failed, and it being manifest that the construction of the Railway could not be attempted without Imperial aid, the Canadian Government did not feel that they were in a position to invite any action on the part of the Canadian Legislature beyond making a 1^ LVTKK-COIiONIAl. RAILWAY. proviMion for a proliniinnry Hurvoy, — the roHult ot' whU-li uu\y lead to i'urtUor iicgutiatiuni, and on a ilifforent \m»\n I'roiii thuf atrrocd to hj tho convoiition. In order to proinoto tho cuustruction t/f ii work which tho cvcntM of ouch MiiccoeilinR ycnr invest with greiitor ini]iortancc, tho CouiinittL'e achlrcs.sed tljcni.sclvcs to tho task of devising plans whereby tho uttainnicnt of the dlijeit \iu}xht \>v >*ocurod in a manner conHi.stcnt with the interests and resources of thin rmvini-c. I'iuy found tliat tlio examination of a route, tnd the satisfactory completion of a survey, were al>riation by the Legislature of Canada for the purpose of making' such a survey as is necessary to the final determination of the several proposals. In conformity with this determination they have nskod an appropriation of 610,000 during tho present Session, and they ]»avo also appoinli'd an enji;ineer to proceed with the survey so soon as tho rciiuisite arrangements can bo completed. Tho action of the Legislature has proceeded so fur us that it may bo regarded as having rendered tho appropriation a certainty; and the immediate eommencement of the survey is, therefore, dependent only upon the unqualified concurrence of tho Provinces of Nova Scotia and New Brunswick. The necessity of a prompt decision on the part of tho fiovernment of New lirunswick, with a view to an early commencement of the survey, is obvious, inasmuch as the season during which the survey may be most otlvantageously performed is rapidly passing away. J. S. M. D. i'^i- 4' No. 27. The Lieutenant Governor to the Administrator of tho Government of Nova Scotia. Freden'cton, Qth October, 1863. Sir, — I have the honor to transmit for Your Excellency's information a copy of a Despatch with Enclosure, which I yesterday received from Hia Excellency tho Governor General of Canada. I have, &c. (Signed) Ahthur H. Gordon Hia Excellency Major General Doyle, iS:c. &c. tza. [ Enclosure. — See preceding De.spatch. ] No. 28. The Lieutenant Gorernor to the Governor General of Canada. Freden'cton, 7th October, 1863. Mt Lord, — I have received with much regret Your Excellency's Despatch of the 29tli ultimo. 2. I now for the first time learn that the advisers of Your Excellency consider the engagement of September, 1862, to have been terminated on the return of the Canadian Delegates to Quebec, in January last. I believe this intimation will be as novel to the Government of Nova Scotia, as it is to my advisers and myself. 3. Before entering upon the examination of the paper enclosed in Your Excellency's Despatch, Your Excellency will permit vce briefly to review the history of the transactions to which it relates. .•,t*t»j*sjis*^IfW*J iP^^9PS l^'TEK-COLOXIAL HAIL WAY. 19 4. IJy a r)c.tp:itcli from tiio Duko of Nowcastlo, ufldroj^sctl to Your Kxccllency, the lOurl of MiiI>!;rHVO ami niyself, datfiil April I'Jth. I8t»l,', «» offer was mmle to tlio OuvcrnincntH of Canada, New ihuiiswii'k, and Ndva Scotia, of *' an Imperial ^nararltl•c of interest towards " onoblin}^ thuni to raine by \ .itdic loan if they Bhould desire it. at a uiodorato rate, the " requiHltu fundM for conslnuting (lie Intor-Culonlal Railway. TLc nature and extent of *' 8uch a f^narnntee" it wan Htuted " must l)c determined by the partieiilars of any schciuo '• which the J'roviiicial ( JovcrnmcMiti maybe disponed to fonnd on the present proposal, and " on the kind oi'Heeurity wl; ili they wouid ofVor." 6. In the month of .Sc^ptcmlier, 1S(VJ, on the invitation of Your Kxccl!ency, Delegates duly appointed on behalf of (Xanadu. Now llrunswick. and Noya Scotia mot nt Quoboo for tho purpose of considering^ this propo.-^al. and al'tcr prtdongcfl and careful discusHioni signed two instrunientn of the nature of a treaty between tho Provinces, which were Hubsu(iuently oonfu'inod by Yo\ir Kxcelleiicy, the JOarl ut' .\|uIgravo, and myscli'. 0. Tho oblipition.s incurrcil ))y these insir\micntH were few and simple. 7. The contracting clauses of tho forjner of them consisted — Ist, of an agreement to accept tho proposal contained in the Duko of Newcasllo's Despatch ; 2nd, nn agreement as to the proportional incidence of tho exiu'iises of tho work to bo tmdcrtakcn. 8. A second and K\ibsidiary instrument of iho sauu) date provided for tho conduct of the surveys which wore to determine tho line of road, and far the nianagcn)cnt of the road when built. It was also agreed that a joint delegation should proceed to Kngland to arrange the terms of tlie loans and the nature of tlu; securities required. 0. Tt is much to bo regretted that the instructions given to the Delegates were not agreed upon in common ; or at all events, that those given by eav.h Province were not communicated to the Governments of the other Provinces interested. What the instruc- tions were which the Canadian Delegates received wo have never up to this day been informed. Those from I^cw Brunswick and Nova Scotia in effect consisted of directions to secure from tho Imperial Government the best terms which they could obtain, con- sistently with an honest adherence to tho engagement to accept the proposal of the Duke of Newcastle, — a proposal which, it must be oi»servod. had been accepted without reserve or qualification, at Quebec. 10. Probably the instructions given to the Canadian Delegates were of a similar character; but so far as knowledge on tho subject is pos.'sessed by the lower Provinces, they might have been of a precisely opposite deserijition. Tho Canadian Delegates never communi- cated them j'jj fxfniso to their Co-delegates in London, and Mr. Howe and Mr. Tilley were as much surprised as the Duko of Newcastle at the alisolntc rejection of a Sinking Fund which, though objected to by all tho Delegates in common, had, neither at Quebec nor elsewhere, been previously stated to be an insuperable objection to the completion of the arrangement for the loan ; nor can any such reservation be found in the agreepient of September, 1802. 11. The Canadian Delegates returned, and reported the failure of their attempt to secure the conditions they deemed essential to permit the fulfilment by Canada of her share of the undertaking. All action on her part was, therefore, for tho time suspended, 12. But whilst it was understood by New Brun.swiok that Canada declined to take any immediate action, it was also believed that she was but waiting for the grant of the more favorable terms she sought from the Imperial Government, and that the action she was pledged to take would be taken so soon as these terms were granted. 13. Certainly it is hard to see how a difference between the English and Canadian Governments, as to the details of an arrangement for the repayment of the proposed loan> wm 20 INTER-COLO.NIAL RAILWAY. could affect the obligations which had been contracted between Canada, New Brunswick, and Nova Scotia, as to the proportion of the expenses justly incident on each Pro- vince in the event of the work proceeding. At all events, no such intimation that Canada repudiated her share in that compact was given, nor has any such been given up to the present moment. It is possible to read even the Memorandum contained in Your Excellency's Despatch of the 29th ult., rather as a warning that the arrangement may not be adhered to, than as a positive intimation that it will not be so. 14. In the belief that, although the immediate action of Canada was suspended, the engagement entered into by her was still considered to be binding, the Legislatures of New Brunswick and Nova Scotia passed Acts giving to that engagement the force of law. Did the Government of Canada give any contradiction to the supposition 'i By no means; although the letter of the Lieutenant Governor of Nova Scotia, of 20th April 18G3, transmitting the Act passed by the Legislature of that Province, afforded a natural opportunity for such an intimation ; even if it had not been obvious that a communication so interesting to all the Provinces .should be made by Canada to the other parties to the contract at the earliest possible moment, and thus prevent the waste of time on the part of their Legislatures, in giving effect to that which had in truth ceased to have any existence. 15. In the course of the last Summer a letter was addressed by Your Excellency to Lord Mulgrave and myself, expressing the willingness of the Canadian Government to go on with the Survey, and requesting us to appoint an Engineer to act in conjunction with those appointed by Canada or the Imperial Government. No plan is proposed in this Despatch for the arrangement of the Survey ; no scheme is laid down as to the payment of the expenses it would entail. It is evidently taken for granted that the appointment would be made and the expenses met according to a pre-arranged and well understood plan. Could there be a clearer proof that the agreement of 18G2 was not supposed to have lost its force, but was held to be still binding on those who were parties to it? But as though to place this fact beyond the region of dispute, it is to be observed that when on the ISth July I wrote to inform Your Excellency that there was much difficulty in departing, «ven in a matter of detail, from the engagement of 1802, and when I again wrote to the same effect on the 20th August, Your Excellency did not undeceive nic or inform me that I was in error since the engagements of that agreement had ceased to be binding since the end of January. Courtesy would no doubt have dictated the communication of such an opinion, if entertained ; but the only response of Your Excellency was an intimation that you had appointed a Surveyor, and some eagerness appeared to be felt that Lord Normanby and I should do the same. 16. I maintain then that the members of ray Council were fully justified in assuming the enga,,^ment to be in full force, and in expressing a hope that no further departure from it would be suggested by Your Excellency's advisers. At all events, my fiOrd, here and in Nova Scotia that engagement is in force and is binding. It possesses here the force of law; and though the Government of New Brunswick may depart from its letter, they are not disposed to repudiate a solemn obligation deliberately contracted, nor can they consent to violate the Statute Law of the Province. 17. Such, it appears to me, my Lord, is a brief summary of the recent transactions connected with the Inter-Colonial llailway scheme. They do not appoar, however, to have been viewed by your advisers in a precisely similar light. 18. The paper enclo.sed in Your Excellency's Despatch commences by an expression of the pleasure felt by the Executive Council of Canada, at learning that it is the intention of Neyr Brunswick and Nova Scotia to concur with Canada in the prosecution of the in»«n*«ww«r«f^«wi>!«'«>vpifprf^^ INTER-COLONlAL RAILWAY. 21 projected Survey ; but, thoy continu','>, that '• to prevent luiisconccption they dc;4rc to call to " mind the manner in wliic'h the ncgoti itions conducted in London terminaled, and the '• general position in which tlie (jucstion of an Inter-Colonial llaihvay at present stands in " Canada." According to this paper the negotiations in London terminated in consequence of the proposal by Iler Majesty's Government of conditions inconsistent with the Quebec agreement, and that Ihc abaiidonment of the basis on which the negociutions had till that time proceeded was a necessary consequence of these proposals, which, liowever, it maybe observed the Delegalos did not seek to modify by discussion with Iler 3Iajesty's (iovernment. This necessity, it is added, had, it was hoped by the Canadian Government, been made apparent to the Governments of New Brunswick and Nova Scotia by a memorandum of ihe 25th February, which 1 may remark was not seen in New Urunswick till the month of April. Your Excellency's advisers proceed, however, to stale that desirous, nevertheless, to take such steps as seemed ojien to them towards the accomplishment of the work, they were willing to undertake " a Survey of the line in conjunction with the other Govern- ments." The remainder of the paper is taken up in recounting the exertions made by the Canadian Government to cti'ect this Survey, and the necessity for an immediate decision by New Brunswick, as the season for surveying operations is now rapidly passing away. 19. I cannot say, my Lord, that I am prepared to admit the accuracy of the assumptions or the justice of the reasonings contained in this paper. On the contrary, it appears to me difficult to reconcile its arguments with the facts which I have already stated. 20. I will proceed to examine its contents a little more in detail. 21.- Your Council remind Your Excellency that the conditions proposed by the Imperial Government, in connection with the assistance to be rendered towards the co. "truction of a Railway " difi'ered in some important particulars from the agreement of September 18G2." Js it too much to ask the Executive Council of Canada to point out the articles of that engagement from which these proposals dill'er ? 1 cannot find in that Instrument any agreement that the expenditure on the Kailway should be held to be an expenditure for defensive purposes, or that a Sinking Fund should not be established ; whilst the only other point mentioned by the Canadian Gocrnment as being contrary to the a^'reement of 18G2, seems to have rcfevenco to one of the securities which were evidently to be required, and to ascertain the nature of which was one of the objects of the joint Delei>;ation to England. 22. The Council refer to their >Iemoraiidum of February 25. as a proof that the atiree- ment of 18G2 was held to be abandoned on the return of the Canadian Delegates from f]ngland. I may observe that this Memorandum has never been officially communicated to the lower Provinces, though it is true it may be found in a collection of Parliamentary papers received from Quebec in the month of April last. 23. I have read and re-read this Memorandum with close attention, but I fail to find there any such announcement as that which it is now said to convey. True, the separate negotiation which Canada entered into with the mother country us to the terms of the loan was shewn to be suspended, and consc((Uently she declined to take any immediate action J but how a negotiation to which they were strangers could aff'ect the obligations of Canada to the Lower Provinces it is dillicult to jierceive, and that this view was taken in Canada also is, 1 think, tdiev.'n by the i'act, that no communication of the nature indicated was made to New Brunswick or Nova Scotia on the adoption of the memorandum in question. or during the passage of the Hallway Bills in these Provinces ; although, as T have before observed, every consideration would haye dictated the communication of so iiuportapt a -I 22 IKTEU-COLONIAL RAILWAY . I'act to the Provinces, equally jmrtics with Canada, to the agieonicnt thus said to be set asiido. 24. '• It is farther to bo observed," say Your Excellency's advisers, '• that the currying '• out of the agreement of September, 1862, necessarily depended upon the success of the " negotiation with the Imperial (jrovernnient and the assent of the Jiegislaturca of the three " Provinces being obtained.'' This is no doubt true, so far as the immediate carrying into efi'ect of the agretiiient is concerned ; but it may be remarlvcil that in tlio opinion of two of the piirtie-i to the Quehoc agreement, the negotiation in England did not fail, and that the Legislatures ol' New Brunswick and Nova Scotia have, by very largo majorities, given full effect both to the agreement itself and to the arrangements entered into with the Homo Government in consequence of that agreement. That the Parliament of Canada has (not hitherto) given this assent is undoubtedly true, fur that assent has never up to this time been sought, but I have yet to learn that it has been refused. 25. I rejoice to perceive that Your Excellency's advisers are of opinion, that " the events " of each succeeding year invest this work with greater importance." It is tmnecessary to assure Your Excellency that its importance is fully appreciated in the lower Provinces. The acts of their (Jovemments and their liCgislatures .shew i'ar better than words ctin do the value which they attach to the completion of this great work. As in the eyes of Your Excellency's advLsers its importance is held to be increasing, I trust I am not too sanguine if I anticipate that it may one day assume dimensions which will induce them to fulfil engagoments v.hioh they have of their own accord deliberately undertaken. 26. As regards the prosecution of the survey, my Lord, i trust that there may bo no niisiiiidcvstanding with respect to the action that New Brunswick is prepared to take, and the view that she is prepared to maintain. There is no objection on the part of tho Government of New Brunswick to undertake the preliminary survey; but in undertaking it they desire that it should be unequivocally understood, that they consider the engage- ments contracted in 1802 to be .still binding alike on New Brunswick and on Canada. 27. And now. my Lord, before concluding this Despatch, 1 must request Your Lord- ship's attention to a question of far deeper inomont than any connected with the Inter- Colonial Bailway alone. 28. The engagement of 18G2 was one of a solemn character, approaching as nearly in its nature to a Treaty, as the political condition of those Provinces permits. It was signed by duly appointed I'lciiipotcntiarios. It was confirmed by Your Excellency, by liOrd Mulgrave, and myself, on behalf of the Provinces we govern. It was not the private agreement of individuals which could be repudiated solely at the exjiensc of the honor of the men who signed it. It was not the undertaking of a Government which might be repudiated at the expense of some discredit to their party, or overruled by their ()p])onents should (hey replace them in power. It was an Inter-Provincial Act, and it is not easy to see how it can be abandoned without peril to the credit of that Province, which, without the consent of the other contracting parties, refu.ses to abide by its engagements. Such a disavowal of contracted obligations between independent nations would, I do not hogitatc to say, bo probably f)llowed by a suspension of all diplomatic relations. 20. When in 1842. King Louis Philippe refused to ratify a Treaty with England, signed by his Ambassador, he was strictly in his right, for the permanent Chief of the State might reluse to confirm the acts of his Plenipotentiary; but he was i'elt to have weakened the lloyal Authority in Prance, and to have done that which brought discredit on his country. Tho case, however, is far stronger when a Treaty is ratified— it then becomes Q naiipiial «jbligation, a;id those who may have most lamented its conclusion, if they sub- sequentlj into effcfl " of sucll " on my | as Her that I se| from act charactei| opinion people oil concern Provincel duct on reprobatij ginks de( should h who knoA the spirit and intej effects of she claim to hersell ^^i^^l^^tK-,- '.' / i,: ,.' :-{uUi INTKR-COLOXIAL RAILWAY. this time the cvonts :!cossary to Provinces, ds Clin do, ?s of Your ) sanguine tn to lulfil nay bo no take, and art of the Jcrtaking ! engage- lada. ur Lord- he Inter- nearly in IS signed by ]jord private or of the )ui ii .i' w if li IP m »>» »' ! INT R I l-COLONJ A L KAIL VV A Y . '21 loniea. 12, 18Ga. a Despatcli e co}.^ of a tcr-Cobiiial ! a copy oF jrORDON. r, 1863. rued Your an iminc- difficulties jontrariety American iging this I added, to that of y entered, e Govern- eenient of matter of yed to the rnment to iroceed to )ressed to a speech atimating felt it my believe,) )ceeding3 r Council r. Dorion character gements, on their ay; and crnment assump- tion by Canada of so large a sliare of the cost of the work as wa.s contemplated by the arrangement of 1SG2, it was by no means clear that the Governmont, as a Government, were pledged to such opposition. Q'he Government of Canada were accordingly informed by a minute of my Executive Council, a copy of which was transmitted by me to Your Grace, that the Government of New Brunswick consented to proceed with the Survey; but in doing so, a hope was expressed that no further departure might bo made from the arrangements entered into in 18G2 ; it being thought advisable to place on record the fact that in the opinion of this Government, although the execution of that agreement might be suspended for a time in conpoquence of temporary diffirulties. its engagements remained in full force as binding upon the contracting parties. 4. To this cnnnnniiication the (^uiadian Govcrnuieiit returned for answer the report a copy of which I had the honor to transmit to Your Grace in my Dcsjiatdi of the 12th instant. f). Although T con.sidored it not improbable if an answer were returned to the communi- cation of the hopes entertained by this Government, that that answer would indicate an intention of breaking the agreements of 1S62, T must own that I was by no means prepared for the avowal of the Canadian Government, tliat they had regarded the agreement at an end since the month of January in the present year, in consequence, as they allege, of the proposals made by the Uritish Government to the Delegates in London being inconsistent with that agreement. Tf such has been the view of the Canadian (Government, I must frankly admit that, holding such a view, I cannot reconcile the course which they have pursued with the obligations imposed by candour and by courtesy. The Legislature of this Province and that of Nova Scotia, passed laws to give effect to the agreement of 1862. These laws were communicated to the Canadian Government, but it was never intimated by that Government that they were useless as the agreement to which they professed to give effect was in fact no longer existent. The proposition for the preliminary Survey was not accompanied by any such intimation, nor was it elicited by the very evident spirit of my various Despatches, which must have shown my own belief in what the Canadian (rovernment held to be an error. 6. It is true that the Canadian Government profess to find such an announcement in their Minute of the 25th February 1863, but I feel sure that Your (J race will agree with me in considering that its contents cannot be viewed in this light. It announces indeed the suspension by Canada of all immodiato action with respect to the Railway, and expresses a hope that the IJritish Government will favorably consider certain fresh pro- posals made on the part of Canada with respect to the repayment of the Imperial Loan. This cannot, I conceive, be looked on as an abandonment of negociation, but rather as its continuance, and it makes no reference whatever to the agreement between the Provinces as to the share which each was to bear in the work, if undertaken. 7. I am confirmed in this view by the fact that gentlemen who were members of the Canadian Government at the time the Minute in question was framed, and who even assisted in its composition, have declared in their places in Parliament that no such inter- pretation as is now sought to be placed on that Minute was given at the time, and that it was not understood in such a sense by themselves, or their colleagues. Moreover, had the Government of Canada then deliberately come to the conclusion of annulling an agreement between that Province, New Brunswick, and Nova Scotia, it is scarcely credible that they should have considered it wholly unnecessary to have com. municated to the other parties to the contract a decision of such importance. Surely they would have taken the earliest opportunity of expressing their regret that circumstances INTER-COLONIAL HAIL WAY. BhoulJ have rendered it necessary for thorn to seek release from their pledged en>,'n »' *.V i JWHI sit iivailublc 1 have boon of the view unoiit have nt to which Jovcrniiient the suivoy. I'ovi.f;, or. T 27 t/i.} ospatch of Canada, in 3r-Colonial the Crown )t directly, ersial cor- se as they that those attributes ' policy of case as it ) brought ernments from the made in ising the ment for towards lesire it, lie terms B62, the ose used iiarantee LXTKU-COLONIAL ItAII^lTM' 81 Tt was also agreed that a Joint Delegation should procee*! to ^.agV nd to «• .ango tho details of tho proposal which had been made and acccptcii only i'' irenoral tcii . I think it is plain, that on tho obtaining of the guuruntoc of i 'mperial ovornuic: * depended the whole of the remainder of the agreement, — and that supposiit<>' a failure ih this respect, — tho remaining terms of tho contract, which only concerned the mode tt using that guarantee, would fall to the ground. [ think it is also a fair inference from the course of action pursued, that the joini .i.J • galion which it was determincil to send to England, was not sent for the mere purpose of accepting whatever terms might bo oft'ered ; but that it had powers to discuss and reject those terms il'lhey appeared unreasonable. 1 heartily concur with Vour I'jxcclloncy in your expression of regret that tho instruction!* to that delegation were not given in writing, and by tho three (governments in common, as such a course would have effectually prevented the misunderstanding which has since unfortunately arisen. When the Dslegates arrived in London they found that one of the conditions which tho Imperial Government considered indispensable, was the provision of a Sinking Fund for the extinction of the debt to bo guaranteed by Great Britain. Without pronouncing one way or the other an opinion whether it was a wise course or sound policy for tho Canadian Delegates to refuse the guarantee on this ground, it is at all events plain that the obligation to provide a Sinking Fund made a great difference in the nature and value of the proposed guarantee. It is also apparent that this proposal was then for the first time brought officially under the notice of the Delegates from Canada. No one oven supposed that Ilcr 3Iajesty's Government was guilty of a broach of good faith in attaching this condition to the oiler of a guarantee made originally without any allusion to it j and whatever view you may entertain as to the policy of such a proceeding, I can scarcely think that on reflection you will still hold tho opinion that such a charge can fairly be made against the Canadian Government for refusing to accede to a condition not contained in the original oflVir, or alluded to in the acceptance by them of the guarantee. If I am right in my opinion that the Delegates sent to London on tho part of the Gov- ernment of tho three Provinces respectively, were armed with powers to reject the con- ditions which Her Majesty's Government might attach to the offer of the guarantee, and did exercise these powers by refusing the guarantee on the terms proposed — the basis of the arrangement having by these means failed, the other stipulations of the agreement which were dependent upon the success of this fundamental terra of course fell with it. With regard to the agreement as to the proportional incidence of the expenditure, I must beg leave to remind Your Excellency that a Memorandum was agreed to by the Delegates of New Brunswick and Nova Scotia in 1861, in which a different apportionment between the three Provinces of the incidence of expense was adopted from that which was agreed to in 18G2 ; but the negotiation having then broken down in consequence of the failure to secure the Imperial assistance on the terms proposed, no imputation of bad faith was made against the Governments of New Brunswick or Nova Scotia, because in 1862 they did not consider themselves bound by the arrangement of 1861 on this incidental portion of the plan. Nor do I think any such imputation could in fairness be made against them. I regret very much that Your Excellency was not furnished officially and immediately with a copy of the Minute of the Executive Council of this Province of 25th February last. I readily admit you should have had it, and I can only account for the omission by INTER-COLONIAL RAILWAY. tho fact that jtwt at tliat tfmo Mr. Tilloy was Loro in pcrHoiml eommanicfttion with the Members of tho Canndinn Oovcrninont. With rospoct to tho quoBtion as to tho survey of the lino nf Railway which has now been proposcil, it appears to mo that whether thi basis of 1H(}2 ho adhered to or abaiidonod, a trustworthy survey is absohitcly iieoessary in order to iiiako any progress towards tho completion of tliis work, ami l trust that any misunderstanding which may have arisen will not bo allowed to impede this indispensable stop. I have tho honor to be, Sir, Vour Kxcellency's obedient servant, (Signed) MoNCK. The Hon. Ariliiir If, (iordixi, kc. \'c. (.Vc. No. 87. The Lieutenant Governor to the Governor General of Canada. Frcthricton, Octohcr 27//t. lHfi3. My Loan, — I have to-day received Your Excellency's Jlcspatcli of tho 17th instant, and although, like Your Excellency, I have no wish to enter into any controversy upon the subject to which it relates, I feci compelled to reply briefly to one or two of the remarks made by Y»ur Excellency. 2. In tho first place, I must be permitted to express my deep regret that Your Excel- lency should conceive me to have desired cither directly or by implication to cast upon Your Excellency any imputation of bad faith. I most certainly had no such intention, for I entertained no such idea, and T regret that my Despatch should, in Vour Excellency's opinion, bo open to such a construction, as I explicitely stated therein that I felt no doubt that the course pursued by Your Excellency had been dictated by good and sufficient reasons. Nor have T, so far as I am aware, expressed any direct judgment on the course pursued by Your Excellency's advisers. Their acts are susceptible of wearing an appear- ance of bad faith, and are so viewed in many quarters. I have, therefore, felt myself entitled to protest against the injury which may bo thus indirectly inflicted upon this Province; but I have expressly stated that these suspicions mighi very possibly be unjust, although it was not unnatural that such suspicions should have been excited by the acts which had caused them. 3. I cannot say that the reasoning of Your Excellency's Despatch has led me to consider, as iuacourate the views put forward in my Despatch to Your Excellency of the 7th instant. 4. I cannot perceive, nor, indeed, does Your Excellency attempt to maintain, that tho proposals of the British Cabinet were inconsistent with tho agreement of 1862, as is urged by the Executive Council of Canada in their minute of September 29, 1863 ; and whilst I quite admit that the question of a Sinking Fund was for the first time officially mentioned to the representatives of Canada in London, Your Excellency cannot have forgotten that it was frequently in the minds of those who took part in the conference at Quebec, and who were well aware that such a condition was invariably insisted on in similar cases by the Imperial Government, and neither there nor subsequently in England until the very evo of their departure did the representatives of Canada assert that it was impossible for them to agree to its imposition ; whilst in the opinion of the Governments of New Brunswick and Nova Scotia, the establishment of a Sinking Fund accompanied by tho concessions ultimately granted by the British Government, as to the period at which the payments to that fund were to commence, and the nature of the securities in which it was to be in- ■e vested, d uiiarantco 5. Tim least of til to tho lo\ but if so, calfiilatoi rcpiiynu'ii ubiuidunii it certain ('anadian cation to to concoiv Mr. TiUej The mem January, that he, Province, 0. Yon apportini faith foil diftorenc ajirccmcn coniplaini cifttions 1 on the pa struction have beei (especial Executiv lature ir was knoi 7. Iq completi and advi will be t I will am awai should in the whenev satisfaci be, a \ provin« to justi His Ex( .m^r<^m ^r p- de^rco diiiiiiiixji the vuluo of the proposod uuarimtdo. I liiivi' iiu do-tiro, Imwuvcr, to rcHuino a diMCU^^Mion on this controverted point. 5. That the niiiiiifi' of Fcliruary lift, IHO,'}, wns, liowovor, inteM(h!il hy sonx^ inoiuJierH at least of tlin (!anaiiirin (iovcrnincnt to chi^o the nep)ciiitioii, and to oonviy an intimation to the hiwcr I'rovin'Crt of its chiso, I am bound to holicvc on their te^'J to have been abrogated, that he, as Your Kxcellency is aware, iutrodiiced a bill into the JiCj^islaturo ol' this Province, to j:;ivc the eil'ect of law to that agreement. 0. Your Kxeollency observes that the lower Provinces agreed in 1801 to a difTercnt apportionment of the expense to that arranged in ISO'J, and that no imputation of bad faith followed its abandonment. This is most true — but there is an extremely important diflercnce to bo observed between that case and the one now undor consideration. The agreement of If^Gl was abandoned by the common consent of all the parties tu it ; but tho complaint now made by the (Jovernment of New Urunswick is that in this case the ncgo- ciations for the preliminary Survey have been perniitte Duke, — Since writing my Despatch of yesterday's date, I have received the ])eHpatch of which a copy is enclosed from tlio Governor General of Canada. I also enclose a copy of my reply, which will, I hope, meet with Your Grace's approval. I have, &c. (Signed) His Grace; ihu Diike of Newcastle, K. G., ^-c. ..Vf. iVc. [ Enclosures. — See Nc. 3G and No. 37. ] Arthur II. Gordon. His Excel No. 39. The Lieutenant Governor to the Administrator of the Government of Nova Scotia. Frtikrkton, Octohtr 29, 1863. Sin, — I have the honor to acknowledge the receipt of Your Excellency's Despatch of the 20th instant, conveying to me the sentiments of Your Excellency's advisers, on the suhject of the recent discussions hetween this Government and that of Canada, respecting the proposed survey for the Inter-Colonial Railroad. I can assure Your Excellency that the Government of New Brunswick entirely share the regret expressed by your advisers, that auy circumstances should have arisen to throw difficulties in the way of proceeding with the proposed survey, to the importance of which, as Your Excellency is aware, my advisers are fully alive ; but the Government of Nova Scotia is too enlightened not to perceive, and too just not to admit, that when a question had been raised us to the nature of the understanding upon which the survey was to be undertaken, it was impossible for this Government to do otherwise than state that which was its own conscientious conviction and belief If by the " unqualified concurrence" re- quired by the Canadian Government, it is meant that the Government of New Brunswick are to admit that the engagements entered into in 1802, terminated in January last, it is not to be supposed that they can acquiesce in a statement, in the accuracy of which they do not concur, and the admission of which would stultify their own acts, and those of the Government of Nova Scotia during the past eight months. Nor when the Canadian Government distinctly intimated by their 3Iemorandum of the 29th September, that, in their view, the agreement of 1802 was no longer binding, was it possible for this Govern- ment, without laying themselves justly open to a charge of want of candour and openness, to avoid expressing their dissent from this opinion. I may observe, however, that my advisers have not as yet stated, as appears to be sup- posed by the Jjxecutive Council of Nova Scotia, that they regard the attitude assumed by the Government of Canada as an absolutely insuperable obstacle to proceeding with the survey ; on the contrary, if Your Excellency will refer to my Despatch to the Governor General, you will find it stated that " there is no objection on the part of the Government " of New Bru-swick to undertake the preliminary survey; in undertaking it, however, " they desire that it should be unequiyocally understood that they consider the engagement " contracted in 1S62 to be still binding alike on New Brunswick and on Canada; " and although it is most undoubtedly the case tliat a reasonable prospect of the work being undertaken if the survey prove satisl'aetory, and a previous understanding as to the mode olonies. • 27, 1863. received tho lada. I also oval. GORDOX. ment of 29, 1863. Despatch of sers, on the , respecting tirely share en to throve e of which, Qt of Nova a question r was to be hat which rence " re- Jrunswick last, it is hich they ose of the Canadian , that, in 3 Govern- openneas, be sup- iunied by with the jrovernor 'eminent liowever, ag«nicnt ;" and k being lie mode INTER-COLONIAL RAILWAY. 35 in which the expense of that work, if undertaken, is to be borne, ara generally considered in this Province, indispensable preliminaries to the oomnienccment of tho survey ; yet it is (juitc open to my Council to rcconinieud that it should still be <;onc on with, ii" under all the circumstances they should deem it advisable to do so. In conclusion, I hope it is almost unnecessary to assure Your Excellency, that it is tho chief desire of my Government in this matter to act in strict accordance and concert with that of Nova Scotia. I have, &c. (Signed) Artihiii 11. Gordon. His Excellency th« Administrator of the Government, Nova Scotia. No. 40. The Lieutenant Governor to tlic Administrator of tbc Government of Nova Scotia. Fredericton, Orfoher 31, 1863. Sir, — I have the honor to forward for Your Excellency's information, a copy of a Des- patch which I have lately received from the Governor General of Canada, together with the copy of a reply thereto, which I have addressed to Ilis Excellency. I have, &c. (Signed) Arthur H. Gordon. Ilis Excellency the Adminii^trator of the Government ot Nova Scotia, ice. &c. &c. [Enclosures. — See No. 36 and No. 37.] No. 41. The Secretary of State for the Colonies to the Lieutenant Governor. Downing Street, 10th October, 1863, \_receired November 3.] Sir, — I have the honor to acknowledge the receipt, together with other Acts of the Legislature of New Brunswick, of " Chapter V. — An Act to authorize a Loan, and for the construction and management of an Inter-Colonial Railway," passed in April last. This evidence of the readiness of tlte Legislature of New Brunswick to promote this important project of Inter-Colonial communication, has afforded me much satisfaction. Her Majesty's decision upon this Act, as well as upon a similar one received from Nova Scotia, will, however, be reserved until the arrival of the corresponding Act from Canada. I have, &c. (Signed) Newcastle. Lieutenant Governor Honorable Arthur Gordon, &c. &c. No. 42. Minute of the Lieutenant Governor for the Executive Council. The Lieutenant Governor lays before his Executive Council a Despatch which he has received from the Secretary of State for the Colonies, dated the 10th October 1863. The Lieutenant Governor is anxious that no misconception should arise as to the bear- ing and object of this Despatch. Her Majesty's assent has not been refused to tho Act in question, nor is its force as Law in this Province in any way invalidated by a delay in the special confirmation usually given to tho Acts of Colonial Legislatures. 86 INTER-COLONIAL RAILWAY. If an Act is assented to by the Lieutenant Governor, it at once and immediately becomes Law, (unless it be an Act containing a suspending cIuuhc,) but it is in the power of tho Queen at any time within the next two years to disallow any such Act. Should two years elapse without any action on the part of the Crown, the opportunity is lost, and the Act can only be repealed in the ordinary manner. To prevent however the uncertainty and inconvenience which might result from the delay of two years being always interposed before it could be certainly known whether the Provincial legislation might not be reversed by Her 3Iajosty, it has become usual for tho Queen to divest herself of this power of disallowance, by specially confirming Act.s speedily after their arrival in England. This course, however, is by no means invariably followed, as there are generally every year some Acts left to their operation without any special confirmation. The eflVict of the delay is simply this, that until the special confirmation is given, or two years have elapsed. Her Majesty docs not surrender the right to disallow the Act. In the present case, as no action can be taken until similar measures to those which have become law in New Brunswick and Nova Scotia are adopted in Canada, no inconvenience can arise from the special confirmation being withheld until the passage of the corres- ponding Act for which Her Majesty's Government appear to look from Canada. (Signed) Arthur H. Gordon. 1st December, 1863. [ Enclosure. — See preceding Despatch ] No. 43. The Secretary of State for the Colonies to the Lieutenant Governor. Downing Street, \Ath October, 1863, [^received Nov. 3. ] Sir, — I have had the honor to receive your Despatches of the 29th August and 28th September, reporting the progress of the negociatiou with the Government of Canada as to the Survey of the Inter-Colonial Railway. I entirely approve the course you adopted in regard to that Government, and have much satisfaction in observing the unanimous concurrence of your Council in the recommendation to appoint an Engineer to make the preliminary exploration and Survey of the line, pre- vious to the passing of the Railway Bills by the Canadian Legislature. I have, &c. (Signed) Njjwcastle. Lieutenant Governor Hon. Arthur Gordon. No. 44. The Under Secretary of State for the Colonies to the Lieutenant Governor. Downing Street, llth October, 1863, [ received Nov. 3. ] Sir,— I have the honor to transmit to you herewith for your information a copy of a Despatch which I have addressed to the Governor General of British North America, on the subject of the appointment of Mr. S. Fleming to the office of Engineer of the pre- liminary Survey of the Inter-Colonial Railway. I have, &c. (Signed) Fredkhi.j Rooebs, (In the absence and by the authority of the Duku of Newcastle.) Lieut. Governor Hon, Arthur Gordon, &o. *c. ic. The 13 My Loi September Council Imperial ( Railway, s The cha been nomii line of In Govcrnmei qualificatio his service: ingly be p It is agi tive of H( interested you" Gove appointme: It will (1 for effectii themselves Governmei Imperial C T Sir,—] Despatch 08 the Re of the Int Hia Excel! The My L Despatch INTER-COLONIAL KAIL WAY 37 [Euclosure.] The Uuder Secretary of State for the Colonies to the Governor General of Canada. DowniiKj Street, Vltli Oetoher, 1863. Mr Lonn, — T have to acknowledge the receipt of Your Lordship's Despatch of 14th 8eptcinber, encloning a copy of an approved Report of a Conimiitce of Your Executive Council, in which it is recommended that the Engineer appointed to act on behalf of the Imperial Government in the contemplated survey of the proposed line of Inter-Colonial Railway, should be sent to Halifax as soon as possible. The character of Mr. Sandford Fleming, whom in your Despatch you mention as having been nominated by the Uoveruraent of Canada to undertake the preliminary survey of the line of Inter-Colonial Railway, is so unexceptionable, and the selection of him by the Governments of Nova Scotia and New Brunswick, is such a further convincing proof of his qualification for the office of Engineer for the line, that I am quite ready to avail myself of his services as the representative of the Imperial Government. Your Lordship will accord- ingly be pleased to appoint Mr. Fleming at once to the situation. It is agreeable to me to feel that by selecting Mr. Fleming as the combined representa. tivc of Her Majesty's Government and that of the North American Provinces, specially interested in this important subject, much delay has been avoided, and that the wishes of you* Government for the immediate commencement of the survey, have, as far as this appointment is concerned, been complied with. It will of course be understood that in waiving their right to appoint a separate Engineer for eft'ecting the survey, Her Majesty's Government do not abandon the right to satisfy themselves that the line is one which will answer the purposes in which the Imperial Government is interested, and that it can be constructed without application to the Imperial Government for any further guarantee. I have, tS:c. (Signed) Frederic Rogers, (In the absence and by the authority of the Duke of Newcastle.) No. 45. The Governor General of Canada to the Lieutenant Governor. Quebec, November 2, 1863, [ received Kov. 10. ] Sir, — I have the honor to enclose for Your Excellency's information, a copy of a Despatch wherein the Duke of Newcastle directs Mr. Sandford Fleming to be appointed 08 the Representative of the Imperial Government in the contemplated survey of the Line of the Intcr-Colonial Railway. I have, &c. (Signed) Monck. Ilia Excellency the Hon. Arthur H. Gordon, &c. &('. &c. [ Enclosure — See preceding Despatch. J No. 46. The Lieutenant Governor to the Secretary of State for the Colonies. Fredericton, November 9, 1863. 7 St. I My Lord Duke, — I have the honor to acknowledge the receipt of Your Grace's Despatch of the 17th October, relative to tlie appointment of Mr. S. Fleming, as Engineer -\ .v....>..f? 38 IXTER-COLONIAL PvAlLWAV. on bcliiilf of tho Imperial (Jovormnent, to conduct the survey for the proposed Inter- Coloniiil liaihviiy. 2. It is with some surprise that T observe in Your Grace's Despatch to Viscount Monck, of which a cupy is enclosed by Your (irace, an allusion to tho assumed fact that Mr. S. Fleming was appointed to act as Engineer on behalf of tho Lower I'mvinccs, as no such appointment has been made by them. It is i"' ■ that tho 3Iembers of the (iovcrnmcnt of Neva Scotiu were not aver.se to 3Ir. Fleming's appointment, but it was never a.ssented to by the Executive Council of this Province, and such beinir (he case, the appointment was not, I believe, ever formally proposed for the consideration of the Executive Council of Nova Scotia. 3. The concluding words of tho third paragraph of Your Grace's Despatch to Viscount Monck, may possibly bo held to intimate that the appoiiitniciit of Mr. Fleming as Imperial Engineer had been io(iuosted by the Canadian Government. If so, I eas only observe that no intimation of the intention to make such a re({uest, or its having been made, was ever conveyed to this Government. In reply to a question whether the subject was mooted during IMr. Tilley's recent visit to Quebec, that gentleman informs me that " su(di a sug- gestion was never made in his pre.-icnce, and if made would have met with his disapproval." 4. I need hardly observe that, whatever misapprehension may have arisen on this point, all those who take an interest in the completion of this important survey, cannot fail to appreciate and feel grateful for Your (Jrace's constant roailiness to encourage any eft'ort made to attain this end, and to meet, whenevov it is practicable, the wishes expressed by the ditterent Colonial Governments in connection with this subject. I have, &c. (Signed) Artiiuii IT. Gordon. Ill's Gn.oe ihe Duke ol' Newcastle, K. G., tVc. &c. &e. 3. Vol of an iwl Governnl (althougl tained sii documenl tention ol reasons f] that to bring un< ^o. 47. Tlio Lieutenant Governor to the Secretary of State for the Colonies. Frpf'' the importance of the proposed Railway " as a means of defence, but could not see why they had deemed it necessary to ask the " Imperial Government so to consider it. " If there had been an agreement between the British Government and the Crovernment " of Canada that the latter should pay a fixed sum annually for that purpose, then he could " understand why they should desire the British Government to recognize the Railway " expenditure as a payment in part of the sum agreed upon. " 3Ir. Tilley heard but little of this matter when in London, and had it been put " forward during any stage of the negotiations as a condition upon which the Canadian " Government would legislate, would have considered the proposition as a violation of " the agreement entered into at Quebec." 4. No subsequent intimation of any kind, written or verbal, was made by the Canadian :fmm^^mmmm*i^i^': 40 INTER-COLONIAL RAILWAY. (roveruincnt on the subject of the agreement as to the llailway, until Mr. Tilley's recent visit to Quebec, the details of which 1 have already described to Your Grace; and it is manifest that the understanding in January, 1SG3, was that, pending the difference between the (Jaiiadian and Imperial Governments iis to the terms of the guarantee, legisla- tive action should be suspended, but the Survey undertaken to facilitate ultimate legis- lative action in thn sense of the Quebec agreement. 5. I may also call to Your Grace'a rocolloction that in my variou.^ Despatches to Your Grace I have always expressed myself as believing the engagement between the I'rovinccs to continue to exist, although its e.\ecution was suspended, and I have more than once expressly stated the consequences which would en>^uc I'rom the repudiation by Canada of that agreement. As these Despatches iiavo been so fortunate as to receive Your Grace's approval, I trust I am not mistaken in flattering myself that Your Grace shared my opinion that the agreement had not, up to that date been abandoned. I have, &c. AuTiiiR IL Gordon. His Grace the Duke of JN'cweastle, Ko. 49. The Secretary of State for the Colonies to the Lieutenant Governor. Doicniuff Street, 2iird October, 1863, [^received N^ov. 15.] Sill, — Learning from Lord Monck's Despatch to mo of the 1st October, that His Lord- ship had sent you a copy of the approved Minute of the Executive Council of Canada, dated 29th of last September, purporting to be an answer to your Despatch to his Lordship of the 18th of the same month, on th.j subject of the contemplated Survey of the line for the Inter-Colonial Railroad, I deem it advisable to put you in possession of the Despatch which I have addressed to Lord Monck ; I accordingly enclose you a copy for your information. I have, &c. (Signed) Newcastle. Lieutenant Governor Honorable Arthur Gordon, &c. &c. ice. [ Enclosure. ] The Secretary of State for the Colonies to the Governor General of Canada. Dnwnintj Street, 20th October, 1863. My Loud, — I have the honor to acknowledge the receipt of Yo Lordship's Despatch of the 1st instant, enclosing a Minute of Your Executive Council approved by yourself, arising out of the proposed commencement of the preliminary Surveys for the Inter-Colonial Ilailway. I understand this Minute to embody the decision of the Canadian Government to the following effect, — that the ncji-ociations with the Imperial Government commenced last winter, with a view to the construction of that Railway, are conclusively abandoned — that the Provincial Governments, (and therefore of course the Government of this country,) arc no longer bound by their respective proposals in relation to that project, and that by rejecting the offers made last winter by the Home Government, the Canadian Govei'nment has placed itself at liberty to repudiate also the convention of the previous September. I feel some difficulty in reconciling the terms of this Minute with those of I'^our Lord- ship's Despatch of the 14th ult., in which you convoyed the recommendation of your ip ;^!.'^;] ' !v: . , . ' : ,'!.j- ;.! HiiH!!^:Piff ^ PPi l fippipppplw*«« llcy's recent !e ; and it is e difference ntee, legisla- timuto Icgis- hes to Your le Provinces •c than once y Canada of our Grace's shared my Gordon. senior. Vov. 15. ] t His Lord- inada, dated Lordship of line for the e Despatch y for your I'CASTLE. Cauada. ir, 1863. s Despatch y yourself, er-Colonial lent to the lenccd last >ned — that country,) id that by overnment ember. our Lord- n of your INTER-COLONIAL RAILWAY. 41 Government, that an Engineer should be appointed by the Imperial Government for the preliminary Surveys, in apparent pursuance of the terms embodied in the Treasury Memorandum of December last, — which Memorandum wan based upon the negociations which your Government now treat as abortive, — and I am therefore somewhat at a loss to understand on what grounds or in what capacity I have been requested to nominate a Surveyor on behalf of the British Government; I have, however, no difficulty in stating that I have every desire to facilitate the operations of the Provincial Government in this matter, and in repeating that the preliminary Survey may, in my opinion, very properly bo placed in Mr. Fleming's hands. I have, &c. (Signed) Newcastle. Mis Excellency the Viscount Mniick, &c. &c. i.Vc. No. 50. The Governor General of Canada to the Lieutenant Governor. Quchcr, lith N'oi-cmlir, 1863, [ received Nov. 21. ] Sill, — I have the honor to acknowledge the receipt of Your Excellency's Despatch of October 27th, on the subject of the negociations connected with the construction of the Inter-Colonial Railway. In reply I shall only say that I shall be happy to receive from you and lay before the Executive Council of this Province, any proposition to which your advisers may agree in reference to the proposed Survey of the line. (Signed) The Honorable Arthur H. Gordon, &c. &c. &c. I have, &c. MONCK. No. 51. The Governor General of Cauada to the Lieutenant Governor. Government House, Quebec, December 2\.st, 1863, [received Dec. 26.] SiK, — Referring to your Despatch of the 8th of October last, I have the honor to transmit to Your Excellency herewith a copy of a Minute of the Executive Council, approved by me, on the subject of the Inter-Colonial Railway. I have, &c. His Exceliency tiii Hon. Arthur H. Gordon. (Signed) MoNCK. [ Enclosure. ] Copy of a Report of a Committee of the Honorable the Executive Council, approved by His Excellency the Governor General on the \%th Dec. 1863. The Committee of the Executive Council have had under consideration a Memorandum of the Executive Council of New Brunswick in reference to the Inter-Colonial Railway, transmitted by His Excellency the Lieutenant Governor of that Province, under date 8th October last, and they have to submit for Your Excellency's ap2n'oval the following obser- vations in reply : — The Committee cannot refrain from expressing their regret, that the Government of New Brunswick continues to attach undue importance (in the judgment of the Committee,) to the details of the provisional agreement entered into at Quebec in September 1862. The Committee have already reported to Your Excellency that, in their opinion, that convention is practically at an end, not by reason of any action on the part of Canada, but 6 i: INTKU-COLO N'lAL KAIL WAV. !* as a result of the coiulitioii.s iiiMistcd upon ))y (ho Imperial Cjovernment iind the coufiequont failure of the negotiations in Loutlon— jiii unyielding iiilheroiicc to the convention of 18GU, in its entirety, and a determination to make it the unalterablo basis of further proceedings can only have the ettcct of indeftnitcly postponing the entire project. On the other hand the Committee are anxious to sec a Survey undertaken at the earliest possible period, that the information may ho acquired which the discussions in London have shewn to be an essential preliitiinnry to further negotiation. It is gratifying to knovf that the steps taken to secure a survey are concurred in by thfl Imperial (rovernment, and the Committee trust that the Government of New IJrunswick will waive all further objection, and thus assist in restoring the rtion of it proceeding lovernment nnient and fo negotia- tified. At verumenta it in 1858. terling per al Govern- i to be car- This pro- e Duke of ted a Des- Jva Scotia lideration, mode of 1 Govern- 3 loan, if Railway. On the 15th of August, 1S02, the (iovornor General invited l>elogates from the Govern- ments of Nova Scotia and New Urunowicli to iiicet the (jovernniont of Cunada at Quebec, to consider the propoHal of the guarantee made by the Imperial (iovernment, and the terniH upon which it (-(Mild be accepted. ft was of course evident to all the j)arties concerned, that negotiation upon the basis jiroposcd in the previous year must necessarily be contiiilered as closed by the refusal of the Imperial Government to comply with the terms of the proposal made by the British Xorth American Provinces. That proposal had been made liy the three Provinces acting in strict concert, and its rejection was simultaneously made known to each of them by the Imperial (Jovernmcnt. In all these proceedings there was a perfect unity of action on the part of these Provinces, and the Committee fail to perceive any divergence in their course, or any withdrawal on the part of one of thcni from engagenicnts into which they had mutually entered. A new proposition having been made by the Imperial (Joverniuent, two grave questions arose. The first of these was whether the ))roposal waa one which should be accepted by the three Provinces. On this being determined in the affimativc, a further question sug- gested itself for consideration as to the portion which should be borne by each Province of the liability which, by the acceptance of the Imperial proposition, was thrown wholly upon the Colonies themselves. The Government of Canada certainly ought not now to take exception to the arrangements made, as the proportions agreed upon were those proposed by the Canadian Government themselves, and not by the Heprescututives of the Lower Provinces. It is not necessary to enter upon the particulars of that arrangement, they arc matters of record, and with which the Government of Canada is perfectly familiar. Let us contrast these proceedings with those of a sub8e(|ucnt date, and ascertain what similarity there is betw«cn the two. Delegates proceeded to England in November, 18G2, to arrange with the Imperial Government the terms and conditions uptm which the proposed loan for the construction of the Intcr-Colouial Railway waa to be granted to the three Provinces. The Delegates had had several conferences with His Grace the Duke of Newcastle, the Chancellor of the Exchequer, the Under Secretaries of the Colonial Office and the Treasury, in relation to the object of their mission. At the close of these conferences, a proposal was drawn up by the two departments referred to, embodying substantially what was supposed to have been concurred in by all the Delegates. Messrs. Ilowe and Tilley accepted the proposal on behalf of the (rovernments they represented, expressing, however, the hope that, upon further consideration, the Imperial tTOVcrnment might be induced to refrain from insisting upon the establishment of a Sinking Fund. The Canadian Delegates were then in Paris; upon their return to Kngland, and just before their departure for Canada, they forwarded to His Grace the Duke of Newcastle a Memorandum containing several objections to the terms of his proposal. At the conclusion of the paper referred to, the Delegates make a counter proposition for the consideration of Her Majesty's Government. The loan asked for by them is X200,000 sterling; they propose to repay it in 10, 20, 30, and 40 years, — that the Debentures should bear interest at 3 J per cent., — and tliat the proportion of the liability to be assumed by Canada should be £1,250,000, or5-12ths; £875,000, or 3M2ths for Nova Scotia, and the like sum for New Brunswick, — substantially agreeing to the proposal made by the Imperial Government in nearly every particular, except in relation to the Sinking Fund. After the return of the Delegates, and awaiting the decision of the Imperial Government 40 INTKU-COLONIAL UAILWAV. • m tlu'ir proiiosii', tlio (lovoniniont of ('iiiiMilii haviiip; been onsurcd tliiit tlio tiovcrnnifiiN III' N'uvM yciitia nnd New nniiiswick wmild iiitrodiUMi intd their lit j;isIiitun'S tlit< in'ci'ssary Itills authoiiziiii; tlu\ luaii iiridor llio itmiiosnl id" tlin liiiporiiil (iDVcriiiiK iit, [ilaci>d in tlicir ilstiiiiiito sid)ndttod to Mus Canadian Parliament the unni id'8IO,(KH) titwards tlic itroiiminary fiurvey. Tins was dona tliatuil niinoce^sary delay in thin iniportiint nndurtaldn^' nii^zlit be avoided. The Government ol' ("iinada was jjroinjitly informed of tli'" action ol'tlie LeLriH- laturcs ol' Nova Sonlia and New Hruiiswielt, and cdpioH ol' tlie Hill passed by tbe two liej^'islatures were transmitted by the Lieutenant (iovernors i>\' Nova t^cotia and New Brunswick to tlic (iovernor (icneral of ('annda. iMirin;; all this time no intinnition w«r given by the Canadian (Jovernmcnt to the (lovernment of Nova Scotia and New Hruns- wick that they considered the nej;()tiations and |)roposals tipori which tliose Uilis were based were at an end, or liad terminated (ns is now alIej;ed)upon the return of the |)elegates of Canada. After lo;.;islation had been completed in Nova Scolin and New Urunswick, the Canadian (Jovernmcnt, under date of (iih July last, coinmunieatcd t(» the ( iovcrnmcnts of the lower Provinces their readiness to appoint an l-'inj^ineer and to proceed with the Survey of the proposed llailwny, and their intcntiim to plate in the estimate to bo voted ut the approaching Session i iippnuiod (o ho piiitj;rcssiiig sntiMfactDrily, until the receipt of the Dc^- palch of tlio (lovcrnor Ocnoral in reply to Your KxcoUoiiey's Pespiitch of tlio 18th Sop- tciiibcr, ill which it is distinctly stilled by the Canadian tiovornmont that tha only condition < upon which tliey will proceed with the .xiirvcy is upon thu distinct niidorslfindiiig tint t'lirther arrangoniciits for llio construction ol' the proposed Hallway iiiii.st bo upon u now Iiiisis. Tho Committee cannot thorcforo but consider that the Oovornniont of Canada — and they alone — aro rosponsiblo for any delay that has, up to tho present time, been causeil in tho rurthorancc of this important Colonial work. We know that it i-i allo;,'c(l by tho Canadian (iovcrnnmnt that thoir Minute of Council itf lioth Kcbriinry was intended as a notllicutioii (if their abandonment of the biiHls upon which negotiation up to that time had been loundod and say that thoy hoped that their report would have been sufficient to prevent misconcei). tioii upon that point. The Committee have more than onco nxamined that document with great care, but have failed to liiul in it a pilnglo sentence that, in their opinion, is calculated to convey cither to the Imperial Government, or to the Governments of New Brunswick 1111(1 Nova Scotia, a notice of tho abandonment of the agreement of ISO'J; and Voiir I'lxcellency has already called the attention of the (Jovernor General to the fact that tho Minute of Council of 25th February last, was never oflicially communicat^il to this Gov- erunient, which, it appears to the Committee, it would most certainly have been, had tho Canadian Government at that time considered it a notification of the abandonment of any agreement formerly entered into by the Governinents of the three Colonies, That it was not considered in this light by the Imperial Government, to whom it was communi- cated, is evident from the terms of the Despatch addres.sed by the Duke of Newcastle to the Governor General of Canada on the 20th October 18G3, in which Ills Grace ob.'^ervea that " ho finds sonic difficulty in reconciling" the intiaation of tho abandonment of the Quebec agreement contained in the Report of the Executive Council of Canada of Sep- tember, with the request made a short time previously for the appointment of an Engineer to take part in the proposed Survey on behalf of the Imperial Government. The Com- mittee, keeping in mind the proposal made to the Imperial Government by the Canadian Delegates on their departure from England, December 23, 1802, in which they state the terms and conditions upon which they were prepared to accept the proposed loan, and reading the Report of the Committee of the Executive Council of Canada, of 25th February 1863, connected therewith, can only look upon the language used in that document as addressed to the Imperii! Government, with a view of inducing them to grant the desired loan upon the terms proposed by the Delegates when leaving London. In support of which conclusion, we refer Your Excellency to tho last paragraph of their Report, which is as follows : — " \''our Excellency's advisers have full confidence that the Government and Parliament " of Great Britain will grant the proposed guarantee upon the most liberal terms, in con- " sideration of the importance of this great work as a measure of defence, and a means of " extending and securing the political and commercial influence of England over an " immense territory, extending from the Atlantic to the Pacific." It appears, therefore, that the proposition made to the Imperial Government in 18G1, ^^'■'^t 48 INTER-COLONIAL RAILWAY. was distinctly refused ; but a counter proposition was made, to consider which the Governor General of Canada invited representatives of the three Governments to meet at Quebec, In the abandonment of the original proposal, all the Governments assembled concurred ; but in the subse(|ucnt proceedings, the conditions upon which the loan was proposed to be made by the Imperial Government were not assented to by the Delegates of the Canadian Government; a counter proposition being submitted by them, and urged by the Canadian Government for the J'avorable consideration of the Duke of Newcastle. Awaiting the decision of this application, the Government of Canada proposed to the lower Provinces the survey in advance of Canadian legislation, and it was not until the Governments of the lower Provinces had assented to this survey, that any intimation was tiven, either directly or indirectly, that the Government of Canada considered the agree- ment of 1862 at an end, or that the acknov/Icdgment by the Governments of Nova Scotia and New IJrunswick of its termination, was made a condition upon which the Canadian Government would alone proceed. The Committee deny, therefore, that New Brunswick was herself a party to a proceeding similar to that of which it now complains ; nor indeed can they perceive the slightest resemblance in the cases between which it is sought to institute a parallel. In the one instance three parties agreed to make a common proposal to a fourth, by whom that pro- posal was declined. The transaction was a very simple one, and clear to all concerned. In the other case, the fourth party made a proposal which was accepted by the remaining three, who, in conse([uence of such acceptance, entered into a further agreement between themselves. Of these three, however, one, it would appear, privately resolved to make her assent dependant upon conditions which were not communicated to the other parties along with whom she was negotiating. To a proceeding of this character, New Brunswick has certainly not been a party. The following paragraphs of the Report now under consideration, call for some remark from the Committee. " If the requirements of the Imperial Government in relation to an " exploratory survey of the central route was unreasonable, the Committee might have " hesitated before assenting to it ; but the Committee are constrained to admit the pro- " priety of the demand of the Imperial Government for trustworthy data as to the cost of " the undertaking, before lending the Imperial guarantee. The Committee need scarcely " remind Your Excellency, that this survey was always regarded in Canada as an important " element in the negotiation in England, as well as a necessary preliminary to the proper " discussion of the subject in the Canadian Legislature. The Government of this Pro- " vince did not press the demand for a preliminary survey, during the conference at " Quebec in 18G2, for reasons which the Government of New Brunswick ought not to *' ignoi'e. The survey was deferred at the earnest solicitation of the Delegates from that " Province, for the purpose of averting apprehended difficulties in their own Legislature ; " for the failure of the negotiations in England, New Brunswick is, therefore, to a large " extent responsible ; because one of the conditions insisted upon by the Imperial Govern- " ment was omitted from the basis of the agreement at Quebec, to promote the convenience " of that Province." The Committee would remark, that they are not aware that the Imperial Government have selected any particular route to be surveyed, and that the admission now made of the propriety of the demand of the Imperial Government for trustworthy data as to the cost of the undertaking, before lending the Imperial guarantee, contrasts strongly with the language used in reference to the same subject by the Canadian Delegates in their communication to the Duke of Newcastle, on the eve of their departure from England, and differs very materially from the language used by the same Government no later the prop lation. The '' conditi " attend i ^.iwj^Safjijdjffiftj INTER-COLONIAL RAILWAY. 49 the Governor t at Quebec. i concurred ; 'oposed to be he Canadian he Canadian posed to the ot until the tiniation was id the agrec- Nova Scotia ic Canadian I proceeding he slightest In the one Dm that pro- 1 concerned. remaining ent between ed to make )ther parties V Brunswick ome remark jlation to an might have lit the pro- ) the cost of eed scarcely in important ) the proper )f this Pro- nference at ught not to !S from that legislature ; I, to a large *ial Govern- :onvenience re that the id that the rnment for guarantee, le Canadian r departure rOTernment no later than September last, when justifying the objections taken by their Delagates to the proposal of the British Government, that the survey should precede Imperial legis- lation. The Delegates say, with reference to this proposal — " The Treasury propose another '' condition, which must greatly delay all arrangements, and may, after all the expenses " attending requisite surveys, the trouble and the difficulties of carrying the necessary " hgislation in the different Colonial Legislatures, render all this trouble, all this expen- " diture, all this legislation useless, and of no avail, leaving certainly a strong feeling of " dissatisfaction in the minds of the inhabitants of the Colonies." The Canadian Government say : — " The Imperial Government thus making the proposed " assistance by way of loan contingent upon the result of a previous survey establishing " the sufficiency of the guarantee for the full purpose for which it was to be granted; the " Delegates were therefore constrained to decline the acceptance of a proposal fettered by " conditions so much at variance with their instructions, and their decision received the " approval of their collengues, as being in harmony with tl e spirit of the agreement arrived " at by the Quebec Convention." It therefore appears, whatever mny have been the opinions expressed by a portion of the Delegates at Quebec, relative to the necessity of Colonial legislation in advance of the survey, the proposal made by the Imperial Government for the survey to precede Imperial legislation, though not at variance with the agreement entered into by the three Govern- ments at Quebec, was rejected by the Delegates from Canada, aiid their action subsequently justified by their Government, while the Delegate representing the Government uf this Province, assented to this as well as all the other conditions contained in the proposal of the British Government; the Committee must, therefore, express their astonishment that, with these facts on record, and fresii in the memory of every member of the three Govern- ments, the Government of Canada should now endeavor to cast ujion the Government of New Brunswick the responsibility of the failure of negotiations in England. The Government of Canada state, " that the assent of the Imperial Government to the " proposed loan was refused unless new conditiouii of a very important character were '' agreed to, and also unless Canada acquiesced in the distinct repudiation of considerations " by which the views of the Government have been largely influenced." The Committee have failed to discover the new and important conditions referred to. The Committee observe that in nearly every Report and Minute of Council prepared by the Government of Canada, reference is made to the decision of the Imperial Government by which they decline to recognize the proposed expenditure by Canada in the construction of the Inter- Colonial Railway, as so much expended by them for the purposes of defence, and it is inva- riably u.sed as a justificatimi for the rejection of the proposed loan to the (Colonies upon the conditions offered by the Imperial Government. The Committee desire to remind the Government of Canada, that this stipulation made by them formed no part of the agreement, nor indeed was brought under discussion at all at Quebec; and they fail to see how it can affect in any way the financial condition of Canada. If Canada was bound by law or by agreement with the Imperial Government to expend for the [lurposes of defence any specified sun), then they could understand why such a proposal was made, and importance attached to its acceptance or rejection. The nature of the .security to be given by the Colonies was one of the questions which the Delegates were required to arrange with the Imperial Government, and as a Siukino- Fund was required when a loan of £1,500,000 was granted to Canada, for the improve- ment of her internal navigation, and as all similar luiius to Colonies have been luudt* by the I. 50 INTER-COLOXIAL RAILWAY. mi\ Imperial Government on the cinidition tliiit a Sinking Fund j^liould be established for its repayment, it was but reasonable to expect that it would be required in this ease also. The Government of Canada must have been fully alive to the probability of such a stipula- tion on the part of the Imperial Government, when they assented to the arrangements of 1862 ; and if they had determined beforehand that it was one to which they could under no circumstances agree, it would have been only fair to the other parties to the negotiation that some intimation of this determination should have been then communicated to them. If this point was regarded as being of such vital importance, why, it may be asked, was it not brought forward upon that occasion ? The objections to the stipulation that the loan is to be the first charge after the interest of existing debts, and that the Debentures should bear il] per cent, instead of 4 as was supposed by the Canadian Delegates, arc both removed by the letter of Sir Frederic Rogers, addressed to Mr. Tilley on the 24th January 1803. A paragraph in the proposi- tion which provides that the assent of the Treasury to these arrangements pre-supposes adequate proof of the sufficiency of the Colonial resources to meet the charges intended to be imposed upon them, was, no doubt, introduced upon the suggestion of one of the Delegates, Mr. Howe, that such information would bo furnished the 1'reasury before Parliament would bo asked to give assent to the loan. Had the Canadian Delegates requested to see the Puke of Newcastle before they left I^ngland, they would have ascer- tained from llis Grace that the transportation of troops, munitions of war, &c., was not to be at the expense of the Colonial Governments, but paid for by the British Government as before stated. The Committee conceive that the objection of the Canadian Government to the Survey being made, in advance of Imperial legislation, being now removed, the Sinking Fund is the only question upon which the Imperial and Canadian Governments appear to be at issue, and, in the opinion of the Committee, nearly all the objections to that proposition were removed by the assent of Mr. Gladstone to invest the fund in our own Colonial securities, while, if a dift'erence of opinion should still exiut between the Imperial Government and thfl Government of Canada upon this point, they cannot see how the Government of Canada can thereby justify herself in departing from the proportion of the expense to be borne by each Province, as proposed by Canada in 1862, and agreed upon by the other Colonies. The difference between the tiovernment of Canada and the Imperial Authorities may render the commencement of the work iii view impossible until it has been satisfactorily adjusted, but the Committee fail to see how this bears upon the agreement between the Provinces, as to the course to be pursued on the satisfactory solution of such difficultie.s. The agreement of 1802 presupposed a satisfactory arrangement with the Imperial (iovern- ment. Till that is effecLed, the scheme is, no doubt, in abeyance. On its settlement the provisions of the inter-Provincial agreement ought, it would appear, to take effect; and, in connection with this subject, the Committee cannot but observe what appears to them a slight confusion on the part of the Executive Council of Canada, between two things essentially distinct. When they speak of the " consent of four diflerent Legislatures being requisite for the confirmation of the Quebec agreement," they are, no doubt, right, in as far as concerns the ratification by the Imperial Parliament of the undertaking of the British Government to guarantee the proposed loan ; but they are clearly wrong in suppos- ing that the consent of the British Parliament is required to — or, indeed, that it could with propriety be consulted upon, — the arrangements between the diflerent I'rovinces them- selves, which are dependent wholly on the local Legislatures and Executive Governments. For the purposes of the negotiation, the Provinjes are looked upon by Great Britain as one whole ; their separate liability is a matter for their own consideration alone. ;f.ti'iji«'*?i#fifijl!A^fi?»?^|f«^4*«^-*?*'^^^ The G| Colonies of New agreemenj The C( all the paj the reject! ponementl to the poll too much t;ood faithi Februui a 1 MV T,OR my Wxc. '. Your B c*: As, ni.a.1 nature of t be but one contemplat allowed to His Excellei Sir,— B of Canada Route of tl that in orC the Survey It will i if the resu reimburse Mr. Sai to the seat ishcd fur its his case also, ich a stipula- ngcnienta of coukl under 5 negotiation ted to them, isked, was it the interest of 4 as was 5ir Frederic the propoai- ire-Huppohes ;o8 intended ' one of the sury before I Delegates have ascer- , was not to jrovcrnnient Jlovernnient moved, the kvcrnments )jections to 'und in our }tween the cannot see proportion md agreed iritie.s nuiy isfjctorily tween the fficiiltie.'!. 1 (iovcrn- ment the cot; and, 8 to thenj fo thing.s ires being ht, in iis ig of the KUppo.S- )uld with es them- rnmcnts. ritnin as INTER-COLONlAL It AIL WAY. 61 The Government of Canada assert that no loss has been sustained by either of the Colonies by the course pursued by the Canadian Government, and that the Government of New Brunswick, in their estimation, attach an undue importance to the details of the agreement of 1862. The Committee on the contrary, are of opinion, that serious loss has been occasioned to all the parties interested in the policy pursued by the Canadian Government, and should the rejection of the offer made by the Imperial Government lead to the permanent post- ponement of the construction of this important line of Railway, results the most disastrous to the political and social conditions of the Colonies may follow j nor, in their opinion, jan too much importance be attached to any of the conditions of a contract entered into, to good faith, by the three Governments. ( Signed ) S. L. Ttlley. W. H. Steeves, J. M. Johnson, John M'Mu.lan. Jas. Steabman. George L. Hathewav. OnARLE.s Watters, Februurj/ 10, 1864. Wilijam E. Pkri.ey. No. 54. a^'he Lieutenant Governor to the Governor General of Canada. Fredericton, N. B., 26th February, 1864. My T,ord, — I have the honor to transmit to Your Excellency the copy of a Minute of my Exb< i+'-'.-^ Council, in reply to that of the Executive Council of Canada, enclosed in Your I o«.i!ti-oy'3 Despatch of the 20th December, 1863. As, tioLUvUstanding the divergence of opinion betw^een the two Governments as to the nature of the engagements entered into between them in the year 1862, there appears to be but one desire on the part of both practically to facilitate the accomplishment of the contemplated work, I trust this con roversy may now, for the present at all events, be allowed to rest. I have, &c. (Signed) Ahthi'r H. Gordon. His Excellenoy The Viscount Monck, &c. &c. &c. [Enclosure See \o. .'i.'^.] No. /)(>. The Governor General of Canada to the Lieutenant Governor. Quebec, 20th February, 1864. Sir, — Referring to the Correspondence which has taken place between the Governments of Canada and that of !iew Brunswick in reference to the eii^cution of a Survey of the Route of the proposed Inter-Colonial Railway, I have the honor to inform Your Excellency that in order to avoid further delay, the Government of Canada has decided to undertake the Survey on its own responsibility, and at its sole expense. It will be for the Governments of Nova Scotia and New Brunswick to consider whether, if the results of the Survey shall prove useful to the enterprise, they will deem it right to reimburse to Canada their proportions of tho cost of the work. Mr. Sandf ord Fleming, the Engineer appointed to conduct the Survey, will be despatched to the seat of his operations as soon as the necessary arrangements oati be completed, and mmi< 52 INTEK-COLONIAL RAILWAY. ''f Ctyi'^mte. d-'K W I have to request that you will give directions that he mny receive any assistance in the discharge of hi:i duties which it may be in the power of your Government to afford him. T have, &c. (Signed) MoNCK. Hit Excellency the Hon. A. H. Gordon, (fee. &c.. Arc. No. 56. The Lieutenant Governor to the Governor General ol Canada. Fredericton, February 29, 1834. My Lord, — I have the honor to acknowledge the receipt of Your Excellency's Despatch of the 20th instant, informing me that under existing circumstances, and with a view to prevent the delays which might bo occasioned by the difference of opinion existing between the two Governments, the Government of Canada has determined to undertake a Survey of the Line of the proposed Inter-Colonial Railway at its own expense, and on its own responsibility. The spirit which has prompted this determination, I trust, offers a favorable augury for the speedy conclusion of the work so long contemplated, and affords a fresh guarantee that the Government of Canada is sincerely desirous of its accomplishment. Every facility will, in accordance with Your Excellency's request, be afforded to Mr- Sanford Fleming whilst in this Province. I have, &c. (Signed) Arthur H. Gordon. His Excellency the Viscount Moiiuk, &c. &c. ifec. No. 57. Minute of the Executive Council in Committee. To His Excellency the Hon. A. H. Gordon, C. M, G., Lieutenant Governor of the Province of New Brunswick, &c. &c. &c. The Committee of ConuoII have had under consideration the Despatch of Lord Monck, dated the 20th of February, informing Your Excellency that the Government of Canada had decided to undertake a Survey of the proposed Inter-Colonial Railway on its own responsibility, and beg to submit the following observations with reference thereto. As the present Government of Canada yet appears to con.sider a preliminary Survey of the Inter-Colonial Railway essential to secure the passage through the Canadian Legisla- ture of Acts to authorize its ooaoidofati o n , the Committee see no objection to their making the exploration upon the terms proposed, and are of opinion that every facility should be afforded Mr. Fleming in making the desired exploration. The Committee wish it to be distinctly understood that the Government of New Bruna- wick are not to be considered in any way necessarily committed to the conclusions at which Mr; Fleming may arrive. Any Survey to be binding upon them, must be con- ducted according to the terms of the Act passed at the last Session of the Legislature of New Brunswick, authorizing the construction of the Inter-Colonial Railway. (Signed) S. L. Tilley, W. H. Steeves, J. M. Johnson, Charles Waiters, James Steadman, George L. Hatheway, John M'Millan, Fkhrmry 29a its own Jto. Survey of m Legisla- iir making should be ew Bruna- -^ elusions at it be con* islature of RS, lEWAY, ^^^^l