IMAGE EVALUATION TEST TARGET (MT-3) 'Y I ^ {./ ^' <'<"€<', / i/.A 1.0 I.I t us, IL25 i 1.4 25 2.2 1.8 1.6 V] <^ /}. '^ > z!^ "-^ '/ Photographic Sciences Corporation iV iV 4^ 'v^ 1i WIST MAIN 5TKIIT WiBSTIRNY MSIO (716) sraMsoa 6^" ^ // C/a CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical IVIicroreproductions / Institut Canadian de microreproductions historiq ues Technical and Bibliographic Notes/Notes techniques et bibliographiques The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked ^lelow. n n n Coloured covers/ Couverture de couleur I I Covers damaged/ Ccuverture endommagde Covers restored and/or laminated/ Couverture restaurde et/ou pellicul6e □ Cover title missing/ Let; D tre de couverture manque Coloured maps/ Cartes gdographiques en couleur Coloured ink (i.e. other than blue or black)/ Encre de couleur (i.e. autre que bleue ou noire) Coloured plates and/or illustrations/ Planches et/ou illustrations en couleur Bound with other material/ l\eM avec d'autres documents Tight binding may cause shadows or distortion along interior margin/ Lareliure serr^e peut causer de I'ombre ou de la distortion le long de la marge int6rieure Blank leaves added during rei-to ation may appear within the text. Whenever possible, these have been omitted from filming/ 11 se peut que certaines pages blanches ajoutAes lors d'une restauratlon apparaissent dans le texts, mais, lorsque cela dtait possible, ces pages n'ont pas it6 film^es. Additional comments:/ Commentaires suppldmentaires; L'Institut a microfilm^ le meilleur exemplaire qu'il lui a 6t6 possible de se procurer. Les details de cet exemplaire qui sont peut-dtre uniques du point de vue bibliographique, qui peuvent modifier une image reproduite, ou qui peuvent exiger une modification dans la mdthode normale de filmage sont indiquds ci-dessous. □ Coloured pages/ Pages de couleur □ Pages damaged/ Pages endommagdes □ Pages restored and/or laminated/ Pages restaurdes et/ou pelliculdes Pages discoloured, stained or foxe( Pages ddcolordes, tachetdes ou piqudes Pages detached/ Pages ddtach^es Showthrough/ Transparence Quality of prir Quality indgale de I'impression Includes supplementary materii Comprend du matiriel supplimentaire Only edition available/ Seule MItion disponibi* r~n Pages discoloured, stained or foxed/ I I Pages detached/ □ Showthrough/ Transparence I I Quality of print varies/ I I Includes supplementary material/ r~n Only edition available/ D Pages wholly or partially obscured by errata slips, tissues, ktc, have been refilmed to ensure the best possible image/ Les pagss totalement ou partiellement obscurcles par un feuillet d'errata, une pelure, etc., ont M film^es A nouveau de fapon A obtenir la meilleure image possible. This item Is filmed at the reduction ratio checked below/ Ce document est filmi au taux de reduction indiquA ci-destou*. 10X 14X 18X 22X 26X 30X y 12X 16X 20X 24X 28X 32X laire i details (ues du it modifier iger une B filmage The copy filmed here has been reproduced thanks to the generosity of: Library Division Provincial Archives of British Columbia The images appearing here are the best quality possible considering the condition and legibility of the original copy and in keeping with the filming contract specifications. L'exemplaire film* fut reproduit grAce A la gAnArositi de; Library Division Provincial Archives of British Columbia Les images suivant«»3 ont AtA reproduites avec ie plus grand soin, compte tenu de la condition et de la nettetA de l'exemplaire filmA, et en conformitA avec les conditions du contrat de filmage. 1/ uAes Original copies in printed paper c overs are filmed beginning with the front cover and ending on the last page with a printed or illustrated impres- sion, or the back cover when appropriate. All other original copies are filmed beginning on the first page with a printed or illustrated impres- sion, end ending on the last page with a printed or illustrated impression. The last recorded frame on each microfiche shall contain the symbol — ^> (meaning "CON- TINUED "), or the symbol V (meaning "END "), whichever applies. Les exemplaires originaux dont la couverture en papier est imprimAe sent filmAs en commenpant par Ie premier plat et en terminant soit par la derniAre page qui comporte une empreinte d'impression ou d'illustration, soit par Ie second plat, selon Ie cas. Tous les autres exemplaires originaux sont filmAs en commenpant par la premiAre page qui comporte une empreinte d'impression ou d'illustration v^t en terminant par la derniAre page qui comporte une telle empreinte. Un des symboles suivants apparaitra sur la derniAre image de cheque microfiche, selon fT OF CANADA '} IN CONN'KCTIOX WITIf TUii; TEEATY OF WASHINGTON. (In continuation oi" Paper presented May 1872.) WrfBriUrO to liofi) Ipouoro of Uirliatnrnt Uy im;' copy of tlio l^iU to jiivi' I'lVi'ct to the Wasliiiiirtoii Tri'aly 1 *j ») M • • • ■ May ■10 Iloporls tliat till' aliovo liill had parsed tlic I)o- ndiiion House of Coiiiiiioiis .. o o To Lord Li^gar. . JllllC 13 Acliiiowli (liriii!: No. '2, a 1(1 •itatiiip that Ilcr !Ma- ji'siy's Uovormiicnt liad learned with iimcli satis- faction till" niaiiin'r in wiiich this liill was ri'ciivcd and iUmIi with in the House of Coiinnons of tlie Donnnion . . -1 4 Lord Lisgar .\rav :iO Ueportin^■ tint tlie W'asldngton Treaty Bill had passed tlirough all its stages in the Legislature .. 4 To Lord Lisgar. . JuiK- 20 Aekuonledginir the ahove, and e\pressing the (joveriuni nt's lii;;h sense of the ]ironipt and able inamuT in whieli this measure hail heeu brought forward liy the Canaiiian Cioveninieiit ; ami eon- veyiiig to Lord Lisgar Her Majesty's entire approval of the idiilitv and judgment with whUdi his Lordship had hroiiu'iit to a elo.-e his siieeesvfnl adininist ration of the important government whieh had been entniatc d to him . . 4 (> The F.:irl of Dufforiu Sl'lltOIIllll'L- •JO Iilelo-iiig Minute of Coiiiieil respecting an Imperial guarantee for the Canadian and Pacilie Kailway Railway . . . . . . . , .5 1 To thf Karl (if DiilTiM-in . . Drccnihi'r 187;i 7i In reply to the above; and stating tlie eonrse which Hir .Maje^ty 3 tio\eriinieiit are prepared to adopt , , . , , . . . r, 8 Tlio n arl of Diitroriu I'l'bniary 17 Siibiniiliiiu'- approved Minute of the I'rivy Couneil eNpri's>ing satisfaction of the Dominion Uovern- nuiit with the arranircnieiits which have been saiietioncil by ITer Majesty's (joverinnent in respect of till' increase ot the guarantee 7 Fditlicr ( Mv L( ', I HAVI the Provisioi tlic citv of \V 2."Sii-J( Oil the -'in] i ficcasion. UiiitocI St.1tf^^ 1871. i( is |)i-( fislierics, slial .shall have h I'arliaiiicnl. ol one liand, ant as.seiit liavins; >cars montioi the hiWK roqii passed by the advice antl ot follows : — 1. Tiie A Majesly's rei;; Vessels,'' and Majesty's rcii]; liy Foreio'ii V(. year of llci- ? Act resp(>eliiii Stdliites I)!' Ni —and the Ad if I lei- Maj(>st tiireol' New |{ f'!). intiUded " Illicit Trade," Hniiisuifk, rei iiii-iil of Caiinc [238j i I'asre llVct to Iho (I (lie Do- lt Ilcr Ma- miicli satis- is liiU was ot Cummoiis ly Hill Iwul .I'^islatiirr . . irt'ssiiig thi.' iipt niid able lien l)ro\iglit t ; and eoii- 'sty's ctitire t with w'.i'c'h IR'l'CS^l'lll iimi'iit which ■ju Iiiiprrial It.iilway 'oursc \vhich lnTiiarcil to ri\ V Couticil iciii CJciM'ni- liavt' horn •rmiii'iil ill Fiii'ther Correspondence witli tlie Governinenl of Canada in connection witli the TnMity of Wasliinj^cOn. No. 1. Lord Lisfjar to the Karl of Kiv-hrrlri/.-^iEecoirpd Mai/ 2-4.) M> L«( ', Governinonl House, Olhiira, Mm/ 0, 187il. I IIAVK lite honour to Jbrwanl lierewilh copy of a Hill "To carry into cfrect the Provisions of tlio Treaty hctwcoii tiio United States a;-rl Great l?i-itniii signed in tlic city of Wasliin^lon (lie Stii INfay, Is7]. " -. Sir John iNlacdonald introduced the Hill in the Canadian House of Commons on the .'ird instant, anil I beg- to inclose a corrected copy of his speech* on the occasion. i have. &,c. (Signed) ■ LISGAR. Inclosure in No. 1. [No. 86, 1872.] An Art ri'lnliiuj to tlir Treat ij of Wasl.hujton. 1871. ^\I1^:U^;AS by Article (hirly-three of (he Treaty between ller !\Iajes(yand (he iVeamhlo. IJiited Stales of America, sjo-ned at the city of Washing-ton on the Hth day oi' .May, 1871; it is jjrovided (hat Arlicles <'i<<-h(een (o (wenty-live inclusive, relating- to the fisheries, shall take ed'ect as soon as the laws required (;) carry (hem iii(o ojieration sliall have been passed by the imperial Parliament of (ireat Britain, by the Parli;inient of Canada, and by (he Leoislature of Prince Kdwanl Jslaiul. on the one hand, and by (ho ("ongress of the United States (ni the other, and that such .'issent having been given, the said Artieler, shall remain in Ibrce for the term of \cars mentioned in the said Article thirty-three; and where;is it is exjiedient thai the laws recpiired to carry the said 'I'realy into elfect as respects Canada should be passed by the Parliament of th(> Dominion': Therefore Her .Aiajesty. by and with the advice and consent of (he Senate and House of Cominons of ("anada, enacts as lollovvb : — 1. The Act oi' tilt- I'arliament of Canaila passed in the ihirly-tirst year of Her i .nain Acts Majesty's reign, chajjler Cil, intituled -An Act respecting Fishing by Foreign ,;t '"X IJniTod Vessels," and' (ho Act of the said I'arliamcnt passed in the thirty-third year of Her s',;',,.*- vcsscU Majestv's reign, chapter 15, intitvdeil " An Act (o anient] the Act resjjecting; Fishing m\A ciiizcns livForeign Vessels,"— anil the Act of the said Parliament pissnl in ilie Ihirtv-fourth cntrnscd in tnkini. vear of Her M:ije.sty's reign, chapter T.\, intitulcl " \n Act birfher to amend (he ll^j^^';,''";;;;^,', ^^^^^ Act res|)ecting Fishing by Foreign VosseLs," — and the !)4th chapter ol' (lit- Revised (^,|,.i,cc, Nova Slalides of Nova Sci.iia (third series^ intitiiletl " Of Coast and l)ee|) Sea Fisheries.'' Scotia, and Now —and tin Act of the I.egisl.ature of Nova Scotia, jiassed in the twenty-ninth year Itnni-vick. ifller Majesty's reign, chapter 3,"). amemling the same: ;iiid (hi' Acl oi'the Legisla- (iireof New IJrunswick passed in the sixleenth vear of Her Alajesty's reign, chapter 0!). intituled "An Act relating to the. Coast Fisheries, and for the Preventing of Illicit Traile," so far as the said Acts of the liegislatin-es of Nova Scotia anil New MrunswicU, respecdvely, a[ ••' (o an\ cas(> (o which (he stiid Ads of (he P.arlia- iiiLiil of Canada applyj shall be, and are hereby suspended tis respects vessels and * Nol printed. |238J B 2 inhabitants of the United States of America engaged in taking fish of every or any kind except siiell-fish, on the sea-cviiists and s!\ores. and in the bays, harljours, anil ereeiss ol' the Provinces oi' Quebec, Nova Scotia, and New [irunswick, as shall alsd all Acts, laws, or regulations (if anv) over which the Parliament oC Canada has control, whicli would in any wise prevent or impede the full effect of the said Article IS. 1-i^li and ri.^Ii oil -i- iMsh oil and fish of ail kintls (except fisii of the inland lakes and of the from Unitud;Stato^' rivcrs falling into them, and exco|)t fish preserve 1 in oil) being the produce of the ;i.li(.iii's to lip fn •. (is^in-i-ies of the United States, shall be admitted into Canada free of duty. Tivin-il of |j;ooil> liiniiiyli (,'anait:i in lioiiil. Cavrias^'o of goods ill Unitf' Vt':-S(-ls I'roni OIH' part of Canada ty aiiotluT, 0011- .iilionailv. .). Goods, wares, and merchandize arriving at any of the ports of Canada, and destined for the United St," s of Anicrici. may be entered at the proper Custom- house, and conveyed in t ,isit. without the payment of iluties, through Canada, under such rules, regulations, and conditions for the protection of the revenue, as the Governor in Council may fiom time to time j)reseribe; and under like rules, regulations, and conditions, goods, wares, and merchandize, may be conveyed in transit without p.ayment of duties, from the United States tiirough Canada, t) other places in the United States or for export from ports in Canada 4. Citizens of the United States may carry in United States' vjssels, withom payment of duty, goods, wares, and merchandize from one port or place in Canada to another port or place in Canada, provided that a portion of such transportation is made through the territory of the Unites States i)y land carriage, and in bond, under such rules and regulations as may be agreed upon between the Government of Her ^lajesty and the Government of the United States. Act, when to oomi j. The foregoing sections of this Act shall come into force upon, from, and nito toici. after a day to l)e appointed for that jiurpose by a proclamation based upon an order of the Governor in Council, and shall remain in force during the term of. years mentioned in Article thirty-three of the said Treaty. fl! No. 2. Lord Liscjar to the Earl of Kimbor!"i/. — (Received June 6.) iMy Lord, Government House, Ottawa, May 20, 1872. I HAVE tlie honour to inform your Lordship that the second reading of tiie Bill "To carry into ellcct the Provisions of the Treaty l)ctween the United States and Great liritain, signed in tiie ('ity of Washington on the 8th May, 1871," was carried in tiie Dominion House of Commons, on the IGth instant, after a division, by a majority of HG, the numbers l)eing 121 yeas to 5.5 nays. 2. 'i'lic debate was long and earnest, extending over several consecutive nights, Tiie line generally taken by the supporters of the Hill was, that tliough the Treaty (lid not realise their expectations, and entailed r. considerable sacrifice of Canadian interests, still it was wif,e to accept it as a moans of establishing friendly relations wi''( ilie United State.-:, and csjjeciallv because Imperial interests of great mag- ni'j.id(> were involved, and because it woidd be ungracious and undiitifid in a matter of such iin|)()rtance to oppose the wishes ol'lhe mother country. The Opposition, on the other hand, contended that better terms might and ought to have been obtained; that though willing to make any reasonable sacrifice in the interests of tiie Kmpire. they anticipated no evil result from a firm mr'-'- tenance of the inidoubted rights of Canada, and they took special objection to the course which the Dominion (Joveriiment h;id taken with regani ''^ the Imperial guarantee of the loan in eompcnsation for tin abandomneni of the clamis ii. ies|)cct of the Ih Columbia Ox .Mil. HorwKi.i.'s ,\Mr.\i)\ii:.sr. Nay=. Gov ornmpiit as. .M; joritv. •J 45 13 3 48 3.-) .> 13 11 3 10 3 7 3 , G G •>o 125 Ontario Quebec Nova Scotia . . Now Brunswicli Manitolia Ilrilisli t'oluni'Ma On Mr. Blake's A.MtNn.MtN r. Yeas. 31 1.) 3 3 Govpinmcnt ays. Majority. 47 16 47 32 12 '.) 10 1 3 3 6 fi 125 Ontario (.jnclicc Nova Scotia .. New Hrnnswicli Manitoba l?ritiih Columbia Sir John .Macdon.m.ds Motion. Yeas. 44 45 13 K' 3 121 Govcrnmont fays. .Majority. 34 10 Iti 29 ») 11 5d 6(i Your Lordship will observe that the Govcnimeiit had a majority in every Province, and that on the division for the second reading of the Hill the three Provinces .vhich arc most directly interested in (he I'.sheries, Quebec, New l{runs- vvick, and Nova Scotia, taken together, gave (iS votes for the Hill to 21 against it. Th(< l*roviiices of Hritish Columbia and .Manitoba voted en liloc lor Ihc Hill, On the other hand in he important Province of Ontario wiiich is far removed from the ocean, the Government majority was only H), the mnnbers being 11 to ;54. i5. In conclusion I may add that the Ministers have informed me that they do not aiiticipate :iny further "opposition to the Hill, but that it will soon pass through the remalaing stages. I have. &c, (Signed) LISG.VR. i:f ili I I I No. 3. The Earl of Kimhcrleij to Lord Lisgar. My Lord. Doirnhuj Htrret, June 13, 1872. I 11 AVK Iho honou" to acknowledge tlie reeeipt ol' your Lordslnp's despatch of the 20th oi May,* rcspectina,- tlie second reading:; in (he Canadian House of Commons of the liill '' to .•arry into ellccf tlie provisions of tlie Treaty between the United States and Great Britain, siu;ned in (he Citv of Washington on the Sth of May. 1871." Her .Majesty's Government have learned with nuich satisfaction the particulars givc-n in voiir despatch of tiie mani'cr in which tliis Hill was received and dealt with in tiie Uoii^e of Commons of the Dominion. I have, &c. (Signed) K1!\IBKRLEV. No. -I. Lord Lisfjar fn Ihe Earl r<^' Kindirrlci/. — (Rrrrircd June ^2.) My Lord, (iorrnimml Ifoiisr, Ollaira, Maii 'AO. 18"2. 1 llAVK the honour lo inibini your Lordslii|^ that the liill "to carry into elictt the provisions of the Treaty between the United States and Great Britain, signed in the City of Washington on tlic Hth May, 1S71,." has passed through all its stages in the t^enate of the Dominion, and now awaits the Hoval .\ssent 2. The report ol' the debate in tlie Senate has not \ et been pubjislied in the loca.l ])aper.-;. l)iit I am informed that il was markeii by great niotleration of tone, and that no amendment was moveri or division called for at any stage of the proceedings. ."i. I am sure that your Lordship will receive with satisfaction the announcement ol the final close, by parliamentary action, of the anxieties which have prevailed during the last twelve months, and of the happy settlement of a question on which :".o many important interests, both Imiicrial and Canadian, were dependent. I hojie to give ihe Royal .\ssent to the Bill before I leave Canada, and I will add tiiat J aia wel!-p|cased to think that this should ho my last public act in Her Majesty's Colonial Service. 1 have, See. (Signed) LISGAIL No. 5. T/c Ear! of Kimherh ij to Lord Li.-yar. i\i\ Loru, Downinii ,'vai-d hy the I lie marked 1 have been \lure on this jesly's entire ;ht to a close h lias been I5KRLEV T/ic Earl of Duffeiln to Ihc Earl nf Kiniherlcij. — (Receiveil Orfolhr 2.) ]\ly Lord, CHadcl, Qurher, .Spplctiln' 20, 1872. WITH reference to |)revioiis corre.spouilcnce which lias taken place iiefore my arrival in this country on the subject of an Imperial guarantee for a Canadian loan for the construction of a railway to the Pacific Ocean, and the enlargement of the Canals of the Dominion, I have the honour to inclose a minute of the Privy Council which states that tiie time has arrived when il is expedient to invite the consideration of ilcr Majesty's Government to this cpiestion, and as Sir George K. Cartier is thoroughly conversant with the whole subject and is about to proceed to J']nglaad for his health, that it is desirahic he should he specially charged with submitting to your Lordship the views of the Canadian Government in tiic matter. I have, &tc. (Signed) DUFFKRIN. Inclosure in No. G. Reporl nf a Cominiltrc of lite Honnurahtf Ihc Privi/ Cnunril, approved btj his E'relAenvy thi- Govrnor-Gencrul oil tlu' \~th Scplnnbcr, 1872, TIIK Committee have had under ccjnsicieration a memorandum dated I 1th Septcmi)er, 1S72, from the Honourable the .Minister of Finance, reporting that, in his opinion, tiie time has arrived when it is expedient to invite the consideration of Her Majesty's (Jovcrnment to the corrc-ipondence which took place in connceiiou with the Treaty of Washington on the suljject of an Imperial Guarantee for a Canadian Loan for tiic construction of a railroad to the Pacific Ocean, and the enlargement of the Canadian janals. The Minister submits that it is important that the Canadian Government should know as early as possible what they have to cxjiect, and as the [Minister of Militia and Defence — who is tlioroughlv ac(piainted with the past negotiations on the subject of fortifications — has been advised to |)roceed to England on account of his health, it seems desirable that he should be- speciallv charged with bringing the whole subject under the consiilcration of Her Majesty's Government. The Minister of Finance reca|)itulates the facts of the case as follows : — On reference to the Minute of the Privv Council of Canada of 20lli January, 1n72, it will, he states, be fouiul that a proposal was made that a guarantee to the extent of 1,000,000/. should be exteiulcd to Canada. That in the Earl of Is. imberley's despatch dated 18th JMarch, 1872, in rei)ly, hi;; liOrdship offered a guai'antee of 2,')()0,00t).', which was accepteil l)y tiie Government of Canada, as will appear by reference to the Minute of Council of loth April, 1-^72, transmitted in Lord Lisgar's despatch of same flate. That no reference was made in the foi. going Minutes to the snbi::isting guarantee of 1,100,000/. sterling, for fortifications ir. Caiuula, aiul the pledge on the part of Her Majesty's (iovernment to be at the cost of the armaments. That, in asking for a guarantee of J,0U(),()l)0/. originally, it was anticipated that the Iin|)erial (iovernment would object to give so large an amount, and it was contemplated that the result of the negotiations would be the transference from military objects to jniblie works of the amount aire ly guaranteed, with a fan- equivalent lor the armaments. That, unfortunately, at tlie verv time when the corres|)ondencc was in the course of taking |)lace, the misunderstanding between Her Majesty's Govcr mcnt and that of the United States on the subject of the indirect claims occurred, and it hceanie undesirable to raise any (piestion reganling the abandonment of the forliiieations 'J'hat, as all these dillieuliies have now been happily settled, it seems most desirable to consider the expediency of abandoning, for the present, the erection of fortifications. Thai, if such defensive works should hereafter be required, Canada would not shrink from the responsibility of undertaking them. That the Imperial Parliament would hardly object to the mere transference of a lo;in already agreed to from military works to great public improvements, and the diirerence between that loan, 1,100,000/., and the 1,500,000/. now asked to supplc- ilil mcnt (he 2,500,000/. already agreed to, being only a o-uaranleo and not a grant, is certainly not more than an equivalent for the promised grant lor armament. That it would probably be considered both by the Imperial and by tl'.e Dominion Parliaments higlily inexpedient at the present time, when cordial relations have been established witli the United States, to commence military works in Canada. He, therefore, recommends tiuit tiie Minister of Militia ami Defence be instructed to bring- this important subject under the consideration of Her .Majesty's (jovernment, and to endeavour to (jbtain their consent to an increase of the Guarantee to 4,000,000/. on condition that the present loan of 1,100,000/. be aban- doned, and also tlie undertaking to sn|)|)ly armaments. Tiie Committee concur in the foregoing Report, and advise that a (.-opy of the present INiinute be transmitted by your Kxeellency to the Earl of Kimberley for the consideration of ller Majesty's Government. Certified, (Signed^ W. A. liniSWORTH, Clerk, Privy Council, Canada. Approved, (Signed) Duffeuix. October 10, 1872. No. 7. The Earl of Kimberleij to the Earl of Duffer! n. My Lord, Downinrj Street, Dccemhrr 5, 1H72, I H.WK the honour to acknowledge your Lordsliip's despatch of the * 20th of September,* inclosing a minute of the Canadian Privy Council, proposing that the guarantee of 2,500,000/, which Her iMajesty's Government have agreed to recommend to Parlinment on the conditions stated in my despatch of the 18th of March last.f shoidd be increased to 4,000,000/. on condition that the present guaranteed loan of 1,100,000/. for fortifications be abandoned, and also the promise on the part of Her Majesty's Government to supply armaments. 1 have had the advantage of conferring with Sir George Cartier, the JNlinister of Militia and Defence, on this subject, and I have now to state the course which Her Majesty's Government are prepared to adopt. Her ^Majesty's Government observe with satisfaction that the Privy Council declare that if sucli defensive works should hereafter be recpiired, Canaila would not shrink from the responsibility of undertaking them. The (jucstions therefore which have now to be considered are, first wdiether Canada being desirous of post- poning her share ol the works which it was agreed in ISG") should be constructed, partly by the Imperial Government at Imperial expense but principallv by the Domini )n Government by moans of a loan under Imperial guarantee, ller Majesty's Government are called upon ro object to such jjostponement ; and secondly wliethcr they can propcM-ly recommend tol'arliament the transferof the guarantee of 1 ,100.000/. for fortifications to a loan for the construction of the Pacific Railroad and the improvement of the Canadian Canals. A further (piestioii remains whether this guarantee should be increased l)y 400,000/. as an equivalent lor the promised supply of armaments. Her iMajesty's Government iiave performed their jiart of tiie works jilanned in 1865 by tiie improvement oi' the fortifications of Quebec, and they are not disposed to (piestion tlic projiriety of the Canadian Government clioosing the time when they may think tit to commence the important military works which C'anada undertook as her share of tlie projected system of defence. They fully recognize the necessity of providing safe and rapid means of communication through Hritish territory between the older Provinces ()\' I he Dominion, and the vast region which has been brought under the control of the Canadian Government by the incorporation with the Dominion of Uritish Columbia and the country formerly governed by the Hudson's Bay Comi)any, and also fiie urgency in the interests of commerce of imiiroving the Canadian Canals : and although they hold it a salutary rule, not to be lightly departed from, that this country should not incur contingent liabilities for exjienditure which naturally falls upon "that part of the Empire which is to reap the direct benefit of the outlay, tiioy are willing, looking to the peculiar position of the * No. 6. \ \'iilc Command I'apcr, Ai-ril, 1872, page 14. Dominion, .and the heavy responsibilities recently thrown upon it, greater prol^al)ly than were ever before mulertaken by a Colonial (iovernment, to make an exce|)tion in this case. They will therefore be prepared, when the time arrives ior the pro- posal of the o-uarantec of the loan of "J, ')()(), 000/., to insert in tlu; Hill a clause transferring the guarantee of 1,100,000/. for fortilications to a loan lor the same purposes as those for which the loan of 2,.')()0,000/. is to bo a|)plied. With respect to the pledge to provide armaments there appear to Iler Majesty'^ Government to be serious objections to the substitution for this pledge of a new guarantee for a loan of 400,000/. It is dilHcult to perceive any common measure between a Parliamentary guarantee for a certain sum and the obligation to |)r<)vide the cost of armaments, an obligation not to arise until the works shall have beei\ actually comjileted ; and wliilst Parliament might be willing to conscMit to a simph; transfer of a guarantee in no way increasing the liabilities of this country, it migiit rcvisonably (lemur to undertaking a new guarantee in return for the abandonment of an engagement of an entirely dilferent kind. They have, therefore, after careful consideration, thought it better not to go beyond the total sum of 3,600,000/., to whicii the guarantee already given and that vhich they have agreed to propose together amount I have o; Is to add that it must be distinctly understood that Iler Majesty's Government take upon themselves no responsibility for the success of the Pacific Railroad, nor of any other works which thv. Canadian Governnient may construct with the proceeds of the loans in question. I have, &,c. (Signed) KIMBERLKY. No. 8. The Earl of Dufferin to the Earl of Kimherley. — {Received ^far(^h 4.) My Lord, Govenimcnl House, Otknea, Fehrtutnj 17, 1873. I HAVE the honour to inclose, for submission to your Lordship, copy of an approved Minute of the Privy Council in reference to your Lordships despatch of the 5th December last, in which my Government express their satisfaction witii the arrangements which have been sanctioned by Her AKajesty's Ciovcrnment in respect of the increase of the guarantee of 2,500,000/. sterling, to 3,000,000/., on condition that the present guaranteed loan of L100,000/. for fortilications be al)andonely armaments for fortifications, and iu)t wishing to embarrass Her M.ajcsty's GovernnuMit with any diflieulty of that nature, they respectfully advise that tlie change^ of the engagement referred to be not further urged, 'jut that the proposal of Her .Majesty's (iovernnient to insert in the projiosed Bill a clause transferring the guarantee of 1,1()0,0()0/. sterling, for lortifications to a loan for the same purposes as those to which the loan of 2,.')0(),0()0/. is to be ajjplicd, be accepted, with the understanding expressed in Lou' Kimberlcy's despatcli that Her Majesty's Government take upon tiiemsclvos i:o responsibility for the success of the Paciiic Railway nor of any other works which the (iovernnient of the Dominion may construci with the proceeds of the loai. in question. (Certilied") (Signed) W. A. HIMSWORTH, CIrrIf of the Prlnj Council, Cminiln. iposcd in the i tlifit might of |.,()00,uOO/. ! not wishing ; nature, tiioy not further the proiiosetl ilications to a to l)e ui)plie(l, lespatc.'i tliat r the sueeess imeiit of the cil, Cimmln. „ s 55^ S <^ B § 2 3 (h 8J C a. B £L R OD ^ -^ 2 o « o 5' g ^ a 2. c p to' '^ ® D- ^