No. 23

I enclose copies of a letter addressed to me by Mr. Watkin on the
part of the Atlantic and the Pacific Transit and Telegraph Company in
which he transmits the leads of a proposal made by that Company for
establishing Telegraphic and Postal Communication between British
Columbia and the head of Lake Superior.

I also enclose copies of the answer which I caused to be returned to that letter and of a despatch
which I have addressed to the Governor General of Canada on the subject.

This proposal I apprehend to be made in the confident expectation
that the Canadian Government will provide similar means of communication
up to the head of Lake Superior, and that means will be adopted for
completing the communication by Railway from Halifax to Montreal, thus
establishing a chain of telegraphic communication and facilitating
enormously the rapid transit of letters and passengers across British
North America.

I need hardly insist on the advantages which such an enterprise if
completed in all its parts will confer on the British Colonies on the
Pacific. It is difficult to say whether they will be greater in war or
peace.

 In war the rapid communication of intelligence will relieve
those Colonies from the constant apprehension of surprise by an enemy
and will give to the Harbors of Vancouver Island as a station for Her
Majesty's Navy an importance immeasurably beyond what they can at
present attain. In peace it can hardly fail to add a powerful and
healthy stimulus to that immigration which is principally wanting to
develop the resources of the Colonies.

I should hope that the Colonists, without whose concurrence I am by
no means desirous of proceeding, will agree with me in thinking that the
guarantee of twelve thousand five hundred pounds per annum to be paid (if
necessary) by British Columbia and Vancouver Island in such proportions
as the two Governments may agree upon, is no unreasonable price for
advantages of so great magnitude.

I have had no hesitation in giving a conditional consent on the
part of the Imperial Government to the grants of land contemplated in
the first and third of the conditions set forth in the enclosed paper,
and I shall transmit a copy of this despatch and of its enclosures to
Canada recommending the project to the consideration of the Canadian
Government.

I have to request that you will submit these papers to the
Legislature of Vancouver Island, and will ascertain the sentiments of
the inhabitants of British Columbia respecting the proposed undertaking,
and I shall receive with great satisfaction the intelligence that laws
are to be enacted which will enable you, if the Canadian government
shall afford their cooperation in the matter, to conclude in detail an
arrangement with the Company on the basis of the enclosed proposals.