CAB37-17 — Page 24

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I am directed to bring the matter under the notice of Her Majesty's Government, and I venture to express the hope that Colonel Stanley will be so good as to give the application the benefit of his support when it is brought under the notice of his colleagues.

I am, Sir,

Your most obedient Servant,

.CHARLES TUPPER.

The Under-Secretary of State,

Colonial Office,

Downing Street, S.W.

MEMORANDUM.

The Canadian Pacific Railway Company has now a continuous line of railway from the Atlantic Ocean seaport of Quebec to the new city of Vancouver on the Pacific Ocean in the Province of British Columbia, a distance of 3,038 miles.

By the 1st June next the line will be thoroughly equipped and in full operation, running regularly through passenger and freight trains from Quebec to Vancouver; express trains making the journey in less than five days. It is the purpose of the Canadian Pacific Railway Company-provided it receives the necessary aid, to which it thinks the enterprise is entitled, in view of the fact that it affords an alternative purely British route to the East, which must be of the greatest national importance-to establish a line of first- class steam ships for service on the Pacific Ocean to run every three weeks from and to Vancouver, from and to Hong Kong by way of Yokohama, making in connection with the Atlantic Ocean mail steamers now running between Liverpool and Quebec a thoroughly efficient mail and passenger service from Liverpool to Japan and China entirely through British territory.

By the proposed new route, mails and passengers can be landed at Yokohama in 26 days from Liverpool, and at Hong Kong and Shanghai in 34 days, which the annexed comparative statement shows to be shorter time than by any other existing route. By employing vessels on the Atlantic equal in speed to the best steamers now running to New York, the time required to make the above ports could be further reduced by three days.

It is proposed to build vessels specially fitted for the service with a speed of from 14 to 15 knots per hour, capable of making the voyage from Vancouver to Yokohama under 12 days.

In consideration of a subsidy of £100,000 per annum, the Canadian Pacific Railway Company would undertake the transmission of Her Majesty's mails from Quebec, Halifax, or other Atlantic Port, carrying them by rail to Van- couver, thence by steamship to Hong Kong vid Yokohama, aud return from Hong Kong vid Yokohama and Vancouver to Quebec, Halifax or other Atlantic port and agree to perform the service efficiently and within the time stated. The contract to be for 10 years from 1st June, 1886.

During the continuance of the Contract, the Canadian Pacific Railway Company would agree to carry troops, military and naval stores, and war material of all kinds, from Quebec or Halifax to all points on their line of railway, and, by their steamships, to all ports on the Pacific Ocean at reduced special rates, to be settled now between the Government and the Canadian Pacific Company.

It is necessary to add that for the first two years, pending the construction of the new steamers proposed to be built, the Company would have to charter vessels of the best class obtainable, so that the new route could be opened for traffic by 1st June, 1886.

(Signed)

The Right Honourable

GEORGE STEPHEN, President,

Canadian Pacific Railway Company.

Sir John A Macdonald, G.C.B.,

London.

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