importance' as to induce them to introduce for the first time the
principle of subsidizing or guaranteeing telegraphic lines on land.

"Her Majesty's Government are further of opinion that without a
submarine Transatlantic telegraph the proposed line in America will be
of comparatively small value to the Imperial Government, and that
whenever a scheme of the former kind is renewed, it is almost certain
that this country must be called upon to bear a much larger charge for
it than that which it is now proposed to devolve upon the British
Colonies in respect of the land-telegraph and communication.

"As Canada has offered to bear one-half of the proposed guarantee, the
Duke of Newcastle is prepared to recommend, and his Grace has no doubt
of ready acquiescence, that British Columbia and Vancouver Island shall
pay the sum of L10,000 per annum, as their share of L20,000 (being at
the rate of L4 per cent, on a capital of L500,000), to commence when
the line is in working order.

"It will, however, be necessary, before any proposal is made officially
to the Colonies, that the Duke of Newcastle should receive further
details. It is requisite that his Grace should be informed what
provision will be proposed as to the duration of this subsidy; what
conditions as to the right of purchasing the line, and to what
authorities that right should belong; and on what terms the whole
arrangement may be revised in the event of the Hudson's Bay Company
coming to any agreement for the sale of their territory.

"There will doubtless be other provisions which the Colonies will
expect.