5. That it is accordingly expedient to address Her Majesty, that she would be graciously pleased, by and with the advice of Her Most Honourable Privy Council, to unite Rupert's Land and the North-West Territory with the Dominion of Canada, and to grant to the Parliament of Canada authority to legislate for their future welfare and good government.

6. That in the event of the Imperial Government agreeing to transfer to Canada the jurisdiction and control over this region, it would be expedient to provide that the legal rights of any corporation, company, or individual within the same will be respected; and that in case of difference of opinion as to the extent, nature, or value of these rights, the same shall be submitted to judicial decision, to be determined by mutual agreement between the Government of Canada and the parties interested. Such agreement to have no effect or validity until first sanctioned by the Parliament of Canada.

7. That upon the transference of the territories in question to the Canadian Government, the claims of the Indian tribes to compensation for lands required for purposes of settlement would be considered, and settled in conformity with the equitable principles which have uniformly governed the Crown in its dealings with the aborigines.

Deputation goes to England.

In the following year a delegation to arrange the terms for the acquisition by Canada of Rupert's Land and the North-West Territory arrived in England. It consisted of Sir George Étienne Cartier and Mr. William McDougall. On presenting themselves at the Colonial Office they were invited by the Duke of Buckingham and Chandos, then Secretary of State for the Colonies, to visit him at Stowe "for the purpose of discussing freely and fully the numerous and difficult questions involved in the transfer of these great territories to Canada." To the Duke's country-seat the delegates accordingly went. Here, one of the first things the Duke communicated to them was that the Company being lords-proprietors were to be treated as such, and not as parties having a defective title and fit subjects for that "spoliation" previously deplored by Cartier.[126] There can be no manner of doubt that, taking this view, the Company's demands were most reasonable. But the Canadian delegates were not content to take this view. There had been so much irresponsible hue-and-cry about the weakness of the Company's title, that they doubtless felt themselves privileged to hold out for better terms. While negotiations were thus pending in London, the Duke of Buckingham quitted office with his colleagues, and was succeeded by Earl Granville. Almost at the same time the Earl of Kimberley, the Company's Governor, resigned, and was replaced by Sir Stafford Northcote. In January, 1869, the new Colonial Secretary transmitted to the delegates the reply of the Company, declining their counter-proposals, and inviting them to communicate to him any observations they might desire to offer further on the situation.

"We felt reluctant," to quote the language of the delegates, "as representatives of Canada, to engage in a controversy with the Company concerning matters of fact, as well as questions of law and policy, while the negotiation with it was being carried on by the Imperial Government in its own name and of its own authority."

Canada exerts pressure on the Company.

Nevertheless, these scruples were soon overcome. They accepted Lord Granville's invitation, and on the 8th February stated at length their views upon the various points raised by the Governor of the Company, which views clearly demonstrated that the Dominion was by no means prepared to deal with the Honourable Adventurers in a spirit of generosity or even of equity. Lord Granville now came forward with plans of his own, but these were not agreeable to Sir George Cartier and Mr. McDougall. While the negotiations were in progress the Company lodged an indignant complaint against the Canadian Government for undertaking the construction of a road between the Lake of the Woods and the Red River settlement without first having procured its consent. Stormy meetings of the Honourable Adventurers were held; it seemed impossible to resist the pressure which was being brought to bear. Had the old governor and committee been in existence it is possible this pressure would have been longer withstood. The delegates returned to Canada, but they had succeeded in no slight measure in impressing upon the Imperial Government their peculiar views. On the 9th of March, Lord Granville employed the following language to the Governor of the Company:

"At present the very foundations of the Company's title are not undisputed. The boundaries of its territory are open to questions of which it is impossible to ignore the importance. Its legal rights, whatever these may be, are liable to be invaded without law by a mass of Canadian and American settlers, whose occupation of the country on any terms it will be little able to resist; while it can hardly be alleged that the terms of the charter, or its internal constitution, are such as to qualify it under all these disadvantages for maintaining order and performing the internal and external duties of government."

Lack of Military system Company's weakness.