The Secretary of State for the Colonies, to the 
     
     Governor Generalt 
     
     (Copy of Copy.) ' 
     
     Dowsxsc Smear, 
     
     4th Sept, 1869. 
     
     Canada—No. 177. 
     
     Shy—- 
     
    

    
     I have read with much satisfaction the Speech 
     
     with which you closed the late session of the 
     
     Parliament ot the Dominion of Canada, as well 
     
     as the Resolutions of the Parliament. authorizing 
     
     your Government to enter 'into negotiations with 
     
     the Government of Prince Edward Island, with 
     
     a view to the admission of that Colony into the 
     
     Dominion. 
     
    

    
     i trust, that in settling the terms proposed, as 
     
     the basis of this arrangement, the Government 
     
     of the Dominion will deal liberally as well as 
     
     justly with the Island, and that the Government 
     
     of the Island will receive favorably such proposi- 
     
     tions when made, as l believe it is in the interest 
     
     of the whole of the B. N. A. Colonies, that they 
     
     should be united under one G0vernment; and 
     
     II. M’s. Government watch with much interest, 
     
     the successive steps that are being taken towards 
     
     the accomplishment of this great end. 
     
    

    
     I have, 850., 
     
     (Signed) GRANVILLE. 
     
     Governor General, 
     
     The Right Ilonorable 
     
     Sir John Young, Bt., 
     
     G. C. B., G. C. M. G , 
     
     &c., &c., &c. 
     
    
   
   
    
     Government House, 
     
     Ottawa, Canada, 
     
     December 18, 1869. 
     
    
   
   
    
     (Copy) 
     
    
   
   
    
     Sir; 
     
    

    
     I nave the honor to transmit, herewithj'or your 
     
     information, and that ol'your Government, a copy 
     
     of a minute of the Privy Council of Canada, relat- 
     
     ing to the question of a Political Union of the 
     
     Island of Prince‘ Edward with the Dominion. 
     
    

    
     JOHN YOUNG. 
     
     Sir R. Hodgson, ‘ 
     
     Administrator, 850., P. E. ‘1. 
     
    
   
   
    
       
     
    
   
   
    
     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. 
     
    

    
     The Committee 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 Government, 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 eli'eet- 
     
     ed, carefully considered the question under its 
     
     linancial aspect, they have come to the conclu- 
     
     sion that the following proposals, which they 
     
     submit for the concurrence ol'the Council, should 
     
     form the financial basis of such uni-on, viz : 
     
    
   
   
    
     ROYAL GAZETTE. 
     
    
   
   
    
       
     
    
   
   
    
     P“...— a--___..‘ “v *M 
     
    
   
   
    
     1159 
     
     - t as:" 4 ~‘ 
     
    
   
   
    
     Ist. The Dominion Government will assume 
     
     and defray all the charges for the following ser- 
     
     v1ces, Viz: 
     
    

    
     (IL) The salary of the Lieutenant Governor. 
     
    

    
     (8.) 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. 
     
    

    
     (E.) The protection of the Fisheries. 
     
    

    
     (R) The provision for the Militia. 
     
    

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

    
     (11.) The Geological Survey. 
     
    

    
     (1.) The Penitentiary. 
     
    

    
     (J.) Efficient .Steam Service for the convoy- 
     
     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 lnterco’lo— 
     
     nial Railway and the Railway system of the Do- 
     
     minion; and such other charges as may be inci- 
     
     dent to and connected with the services, which, 
     
     by the B. N. A. Act, 1867, appertaiu 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. 
     
    

    
     dd. That the Island not having incurred debts 
     
     equal to those of the other Provinces now consti- 
     
     tuting the Dominion, shall be entitled to receive, 
     
     by half-yearly payments, in advance, from the 
     
     General Government, Interest at the rate at five 
     
     per cent. per annum, on the difference between 
     
     the actual amount of its indebtedness and the-in- 
     
     debtedness per head of the population, at which 
     
     Nova Scotia and New Brunswick are now allowed 
     
     in the Union, or the payment of such dill'erence, 
     
     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 expenses 
     
     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 population, to be augmented in proportion to 
     
     the increase of the population as may be shown 
     
     by each Decennial Census, until the population 
     
     amounts to 400,000, at which rate such Grant 
     
     shall thereafter remain, it being understood, that 
     
     the First Census shall be taken in the year 1871. 
     
    

    
     They submit that much discontent has for many 
     
     yeas existed amongst. the inhabitants ofthe 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 rrsident 
     
     abroad, thus leaving the Government of the 
     
     Island no lands, the proceeds ol'thc sale of which 
     
     could, as in the other British Colonies, be appro- 
     
     priated towards~ Local improvements and the 
     
     xnainteinancc of “the Government. 
     
    

    
     That this discontent has been increased from 
     
     the fact, that many of the settlers in the Island 
     
     can only obtain land-"on lease, instead of the pur- 
     
    
   
   
    
     .-