Hamilton to Merivale (Permanent Under-Secretary)

Adverting to your letter of the 14th Instant, I am
desired by the Lords Commissoners of Her Majesty's Treasury
to transmit, for the information of Secretary Sir E.B. Lytton,
the enclosed copy of a letter from Messrs Benson & Co,
relative to the offer made by the North West Navigation and
Railway Company of Canada to establish a postal service with
British Columbia.

In consequence of that communication a deputation on
behalf of the Company attended at this office, and had an
interview with one of My Lords Secretaries, and it appeared,
from the statements made on that occasion; that it was the
opinion of the Deputation that the contemplated Mail Service
from San Francisco to British Columbia, for which Tenders
are about to be invited, would entirely preclude all hope of
success in Establishing the route through the British North
American territory, which it is the object of the Company to open.

Sir E.B. Lytton is aware that it was determined to
invite Tenders for the Service from San Francisco, in
consequence of the overtures made by Mr Stamp of British
Columbia, whose proposals were submitted to this Board by the
Colonial Office, accompanied by strong recommendations in
his favor from the Lieutenant Governor of the Colony.

My Lords, under the impression that the course indicated
by the proposal of Mr Stamp, offered the best and earliest
means of Establishing the desired communication—and that the
question involved in the offer of the North Western Navigation
and Railway Company of Canada was one which more immediately
concerned Colonial Interests, and could not be treated as a
mere postal arrangement—thought it desirable to postpone the
consideration of the latter proposal, until they had ascertained
the wishes and feelings of the Canadian Government in the
matter, and to endeavour, without delay, to establish an
effective postal Communication with British Columbia.

They have accordingly taken steps for procuring tenders
for this purpose.

Before, however, My Lords issue final instructions for
this purpose, they would be glad to hear the views which Sir E.B. Lytton
entertains on the subject: because, although My Lords
cannot but see great difficulties in the way of assisting, in
the manner asked for, such a scheme as that which this Company
brings forward, yet, looking to it's undoubted importance, to
Imperial not less than Colonial interests, My Lords
would regret extremely to take any step which would have
the effect of putting an end to it, without the most mature
consideration.