. Canada: an encyclopædia of the country; the Canadian dominion considered in its historic relations, its natural resources, its material progress and its national development, by a corps of eminent writers and specialists. ord Dufferin, blames for lack of diplomacy and tact, but wliethersuch was the case or not, the negotiations fellthrough and on May 20th Mr. Mackenzie recalledhis envoy. The proposals of the Canadian Governmentmay be summarized as follows : 1. To commence at once, and finish as soon aspossible, a railway from Esquimault to Nanaimo. 2. To spare no expense in settling


. Canada: an encyclopædia of the country; the Canadian dominion considered in its historic relations, its natural resources, its material progress and its national development, by a corps of eminent writers and specialists. ord Dufferin, blames for lack of diplomacy and tact, but wliethersuch was the case or not, the negotiations fellthrough and on May 20th Mr. Mackenzie recalledhis envoy. The proposals of the Canadian Governmentmay be summarized as follows : 1. To commence at once, and finish as soon aspossible, a railway from Esquimault to Nanaimo. 2. To spare no expense in settling as speedilyas possible the line to be taken by the railway onthe mainland. 2o6 CANADA : AN ENCYCLOPEDIA. 3. To make at once a wagon road and line oftelegraph along the whole length of the railway inBritish Columbia, and to continue the telegraphacross the continent. 4. The moment the surveys and roads on themainland are completed to spend a minimumamount of $1,500,000 annually upon the construc-tion of the railway within the Province. On June 8th these proposals were withdrawn,and shortly afterwards the Premier of BritishColumbia went to England and laid before the?Colonial Secretary the case for his Province and. The Marquess of Dutferin and Ava, against the Dominion. Considerable acrimoniousdiscussion followed, and finally Lord Carnarvonoffered to act as Arbitrator in the matter. Inthis usually thankless task the Colonial Secretarywas unusually successful. He summed up hisconclusions on the question, and then in a des-patch to Lord Dufferin proposed terms of settle-ment which have generally been considered asfair and equitable. They were as follows—No-vember 17th, 1S74 : I. That the railway from Esquimault to Nanaimo shall be commenced as soon as possi-ble, and completed with all practicable despatch. 2. That the surveys on the mainland shall bepushed on with the utmost vigour. On thispoint, after considering the representations ofyour Ministers, I feel that I have n


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