"I was quite aware of the willingness of the Company to sell their whole rights for some such sum as 1,500,000_l_. I ascertained the fact two months ago, and alluded to it in the House of Lords in my reply to a motion by Lord Donoughmore. I cannot, however, view the proposal in so favourable a light as you do. There would be no immediate or direct return to show for this large outlay, for of course the trade monopoly must cease, and the sale of land would for some time bring in little or nothing—certainly not enough to pay for the government of the country.
"I do not think Canada can, or if she can ought to, take any large share in such a payment. Some of her politicians would no doubt support the proposal with views of their own,—but it would be a serious, and for some time unremunerative, addition to their very embarrassing debt.
"I certainly should not like to sell any portion of the territory to the United States—exchange (if the territory were once acquired) would be a different thing,—but that would not help towards the liquidation of the purchase-money.
"I admire your larger views, and have some tolerably large ones in this matter of my own, but I fear purchase of this great territory is just now impracticable.
"I am, yours sincerely,
"NEWCASTLE.
"Edwd. Watkin, Esq."
This letter was written in the educational period. The doubts came from the officials of the Colonial Office. I removed them.
"Downing Street,
"17 Novr. 1862.
"My dear Mr. Watkin,
"I send you the 'route' from the Pacific to Canada, which I promised.
"I cannot vouch for it; but it comes from an unusually well-informed quarter, and I incline to think it is much nearer accuracy than such information as represents the obstacles to be almost insuperable.