"In looking over the maps very carefully prior to sending in the documents proposed to be transmitted through your Grace, I find that it is very probable—from the desirability of carrying a telegraph through a wooded country, and avoiding the plains, where buffaloes often move about in square miles of extent—that we may go through the Imperial territory for a more or less considerable distance. It therefore strikes me, that what I have before suggested, as to the desirability of Imperial assistance, may not be reconciled with Mr. Gladstone's desire to avoid an Imperial contribution of money. I therefore suggest to your Grace, that the Imperial Government should agree to give a grant of land of some reasonable extent, also that portion of the territory lying between the Hudson's Bay territory and British Columbia which belongs to the Crown, provided a telegraphic and road communication passes through any portion of that territory.
"If this meets your Grace's views, would it not be better that the fact of the Imperial Government having made this concession should be recited in the preamble of the proposed Bill which we are to send to Canada, and that thus invited to the scheme by a contribution of land, power to purchase or control should be directly given by a clause to the Crown? If your Grace will give me your views upon this at once, I will have the documents prepared accordingly, and transmitted without delay.
"'Minesota' has given about two millions of acres in aid of works to extend their rail and water communications in the direction of Red River.
"I have to thank your Grace for sending me Mr. Foley's report, and, also, copy of the Minutes of Council as to the Intercolonial and the western project.
"The territory I allude to is hunted over by the Hudson's Bay Company, and forms, mainly, a portion of what they call the Athabasca district."
It was matter of deep regret to me that the Government of the day would not accept any share of the pecuniary responsibility of adding to the compactness of the Empire, by connecting the two oceans by telegraph and by road. The despatch which I copy—dated Downing Street, 5 March, 1863—distinctly says, in its third paragraph, "Her Majesty's Government are of opinion that they cannot apply to Parliament to sanction any share in the proposed subsidy by this country."
"DOWNING STREET, "5_th March_, 1863.
"SIR,
"I am directed by the Duke of Newcastle to acknowledge the receipt of your letter of the 27th of December, and to express his Grace's regret that so long, though quite unavoidable, a delay should have occurred in replying to it.
"I am now desired to make to you the following communication:—