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ROYAL GAZETTE EXTRAORDINARY.

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Copy of a Report of a Committee of the Honor- able the Privy Council, approved by His Ex.

cellency the Governor General, in Council, on the 14th December, 1869. i

The Cummittee of Council have had under con- sideration, a memorandum, dated 11th December, 1869, from the Hon. Sir George E. Cartier and Messrs. Tilley and Kenny, stating, that at the desire of their Colleagues, they visited the Island of Prince Edward, in August last, and having, while there, had the opportunity of discussing, informally, with members of the Gevernment, and other leading public men, the question of the political union of the Island with the Dominion, and having, in view of the importance of estab- lishing a basis on which such union can be efl'ect- ed,,careiully considered the question under its financial aspect, they have come to the conclu- sion that the following proposals, which they submit for the concurrence of the Council, should form the financial basis of such union, viz:

1st. The Dominion Government will assume and defray all the charges for the followingser- vices, viz: ' ' _ (21.) The salary of the Lieutenant Governor.

(B.) The salaries of the Judges of the Sn- preme Court and District or County Courts, when established. '

(0.) The charges in respect of the department of Customs.

(1),) The Postal Department. (111.) The protection of the Fisheries. (R) The provision for the Militia.

(G.) The Light Houses, Shipwrecked Crews, Quarantine and Marine Hospitals.

(IL) The Geological Survey. (1.) The Penitentiary.

(J.) Efficient Steam Service for the convey- ance of Mails and Passengers, to be established and maintained between the Island and the Domi- ,nion, winter and summer, thus placing the Island in continuous communication with the Intercoloo nial Railway and the Railway system of the Do- tnjnion; and such other charch as may be inci- dent to and connected with the services, which, by the B. N. A. Act, 1867, appertain to the General Government, and as are, ~ or may be, allowed to the other Provinces. '

2d. Canada to be charged with the debts and liabilities of the Island existing at the time of the union.

3d. That the Island not having incurred debts equal to those of the other Provinces now consti- toting the Dominion, shall be entitled to receive,

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by half-yearly payments, in advance, from the General Government, Interest at the rate of live per cent. per annum, on the difference between the actual amount of its indebtedness and the in- dcbtedness per head of the population, at which Nova Scotia and New Brunswick are now allowed in the Union, "or the'payment of such difference, in five per 'cent. Government Bonds, payable in London, as the Island Government may elect, taking the population of the Island in 1861 as the basis of the calculation.

4th. The Dominion Government to pay $25,000 per annum to the Island to meet the expensrs of the Local Government and Legislature.

5th. An annual payment to be made to the Island Government equal to 80 cents per head of the pepula- tion. to be augmented in proportion to the increase of the population as may be sheWn by each Decennial Con; sns, until the population amounts to 400.000, at which Rate such Grant shall thereafter remain, it beingundero, stood, that the FirstCensus shall be taken in the year 1871.

They submit that much discontent has for many years existed amongst the Inhabitants of the Island, arising from the fact that the Lands of the Colony had been granted by the, Imperial Government in large blocks, and chiefly to perSons resident abroad, thus leaving the Government‘of the Island no lands, the proceeds ot the sale of which could, as in the other British Colonies,be appropriated toWards Local ImprOcheuts and the maintenance of the Government.

That this discontent has been increased from the ' fact. that many of the settlers in the Island can only ob- tdnland on lease. instead of the purchase, as in the other British North American Colonies.

That up to the present titne,‘.the Island Government have failed to secure a consideration in lieu ol the lands thus granted by the Crown. Notwithstanding the efforts that have been made by the Government and Legislature of the Island to remove the obstruction to7 the settlement of the Colony arising lrom this cause, there still remains about one-third of the Island owned by absentee Proprietors, a Very considerable portion of which is unoccupied and in the condition ul'n wilderness.

'I‘hutin the event of theIsldnd becoming part of the Union. the Government of the Dominion Wlll endeavor to Secure for the Island. from the Imperial GUVernment, fair compensation for the loss ofCrown Lands. Should the Dominion GOVernment fail in their efforts to secure such compensation, they will undertake to raise by Loan, guaranteed by the Imperial Government, or upon their own securities. should such guarantee be refused. Eight hundred thousand dollars ($800,000), and pay the same to the island Government as a compensation for the loss of such Crown Lands—this sum to be in addition to the other sums mentioned in the precedin' . preposals. That the Dominion Gevernment will also use their influence to secure sueb Legislation as will enable the Gm’crumcnt ol the Island to purchase the Land, now held in large blocks. upon terms just and equitable. to all parties concerned. The Committee concur in the said memorandum and submit the same for your EXt-clleney’s sanction.

Certified. “'51. II. LEE. Clerk. P. C. '