Company would be ready to adopt it.

"_Article_ 1.--His Grace sees no objection to the grant of land
contemplated in this Article, but the 'rights' stipulated for are so
indeterminate that without further explanation they could scarcely be
promised in the shape in which they are asked. He anticipates, however,
no practical difficulty on this head.

"_Nos_. 1 _and_ 2.--The Duke of Newcastle, on the part of
British Columbia and Vancouver Island, sees no objection to the maximum
rate of guarantee proposed by the Company, provided that the liability
of the Colonies is clearly limited to 12,500_l_. per annum. Nor
does he think it unfair that the Government guarantee should cover
periods of temporary interruption from causes of an exceptional
character, and over which the Company has no control.

"But he thinks it indispensable that the Colonies should be
sufficiently secured against having to pay, for any lengthened period,
an annual sum of 12,500_l_. without receiving the corresponding
benefit, that is to say, the benefit of direct telegraphic
communication between the seat of government in Canada and the coast of
the Pacific.

"It must, therefore, be understood that the commencement of the
undertaking must depend on the willingness of the Canadian Government
and Legislature to complete telegraphic communication from the seat of
government to the point on Lake Superior at which the Company will take
it up. Nor could his Grace strongly urge on the Colonies of Vancouver
Island and British Columbia the large annual guarantee which this
project contemplates, unless there were good reason to expect that the