advisers are not insensible to the difficulties imposed upon them in carrying into execution the purpose of the Crown. A province, bordered by an open frontier of more than a thousand miles, approached with ease at all times by the citizens of a neighbouring and powerful state, separated from England not only by the ocean but by the rigours of climate and season, must be maintained by a judicious preparation for defence in time of peace, and a vigorous exertion of the resources of the empire in time of war or not at all. To trifle with the fortunes of men whose lives and properties are freely devoted to the service of England, or to encourage foreign aggression by neglect or apathy, would be far worse than the spontaneous surrender of these important possessions of the Crown. The Canadians might in such a case incur no risk, no blood need be shed, and the treasures of the empire might be spared. The other course would be cruel to a brave people, and unbecoming the character of the country.

But, as I have already said, we have no alternative. We have only to consider the means of binding Canada more firmly to this country, of developing her resources, of strengthening her British population, of defending her territory, and of supporting and encouraging the loyal spirit of her people.

In this spirit, then, I shall touch upon the principal topics connected with these views:

1.-FINANCE.

You have stated the debt of the United Province to amount to 1,226,000l., and with the sum required to complete public works VOL. LXXXIII.

necessary for the free passage between the western portion of the province, the St. Lawrence and the sea, to about 1,500,000l.

The Queen's Government coincide in your views of the expediency of making such an arrangement as may employ the credit of this country for the benefit of the finances of Canada, and have given their best consideration to the plan proposed in your despatches. They are of opinion that such an ar rangement, if it can be carried into effect, with the consent of the creditors, would be in every way desirable, but they feel that the objections to a bill, compelling parties to receive payment of their money in breach of agreements entered into with them by competent authority, are insuperable.

Her Majesty's Government are ready to give any assistance in conformity with your proposal which does not appear to them inconsistent with good faith. They are ready to propose to Parliament to guarantee a loan which may be required for public works (under the restrictions suggested by you), for the repayment of such part of the debt as may be now redeemable, or may be held by creditors, who shall declare themselves willing to accept reasonable terms.

With regard to this latter sum, it appears to the Government most expedient that you should fix such terms as you may consider sufficient to induce the creditors to accept the proposed equivalent (not of course exceeding 100l. for every nominal 1007. lent); that you should make known such tender in such way as may appear to you most advisable, giving the holders sufficient notice and information, and fixing a given day before which the willingness of the par2 G

ties to accept such offer should be sent in.

To do this, an Act of the Canada Legislature will be necessary, and when that is obtained the subsequent arrangements might be made; or through some party deputed on the part of the Canadas to this country with full instructions.

It may, perhaps, be also expedient at the same time by law to enable trustees, &c., to account, as in cases where the interest of loans are received in this country. Upon receiving the information of the assent of the parties accepting the terms proposed, the necessary means may be taken in this country to raise the requisite funds; and it may be expedient that you should fix the day for the paying off such assenting creditors and other claims at a time when the Parliament of this country is sitting; for should it be necessary to have recourse to a loan, such a measure has always been considered open to objection during the prorogation of Parliament.

2.-DEFENCE.

I have perused with great interest the enclosures in your despatch of the 24th of December, containing reports from Lieutenant-General Sir Richard Jackson, and Colonel Oldfield, the commanding officer of engineers, on this subject.

military subject is in this instance of peculiar weight, from the attention he has for many years given to this matter, both on political and on military grounds. Their opinions are transmitted with this despatch.

Her Majesty's Government agree in opinion with Lord Hill and Sir Richard Jackson, that "no dependence upon the decided superiority of our troops, and arrangements made for defence connected with them, should lead us to neglect the construction and completion of permanent works calculated for the protection of the points of most importance to us."

They likewise concur in his Lordship's opinion, that in the event of the construction of these or any other works, a large effective regular force, and a militia, registered and enrolled, but not called from their districts, except in case of invasion, will be indispensable.

But it cannot be reasonably expected that works on a large scale should be undertaken without reference to the great expense to be incurred.

I have therefore to inform you that the Government are prepared to state their opinion that, beyond the ordinary estimates of the year, 100,000l. should yearly be applied for the defence of Canada. At present, this sum is nearly absorbed in the maintenance of the militia and volunteers. But by a more economical plan this expense might be greatly diminished, and a great portion of the sum of 100,000l. left for the improvement of military communications, and the erection or repair of fortifications.

fully considered the various plans proposed.

3.-EMIGRATION.

I have read with great interest your despatches on this subject, and I agree with you in opinion that it would not be wise for this country to engage to convey emigrants to Canada at the public expense. But neither can I agree that this country ought to pledge itself indefinitely to the expense of maintaining the emigrants in Canada till they are able to obtain employment.

quite concur, however, in the sense you entertain of the importance of the object.

It is a hardship to Canada that she should be obliged to maintain the pauper emigrants from the United Kingdom, who arrive in a state of destitution and disease. But this object was formerly provided for by the imposition of the emigrant tax, and I think the renewal of this tax should be recommended to the Legislature of Canada.

I have recommended to the Treasury that the expense thus incurred by the emigrant should, in consideration of the great political advantages likely to flow from emigration to Canada, be defrayed by this country.

Supposing a tax of 5s. a-head, 32,000 emigrants might be freed from the tax for 8,000l. This is a sum which I think Parliament might be asked to vote for so important an object. The tax might then be paid in Canada, not by the captain of the passenger ship, but by the Commissary-General,

on proper vouchers of the number of emigrants landed.

In this case, the only emigrants paid for must be those whose fitness for emigration had been previously attested by an emigration agent in this country.

The emigrant tax would then act as a check, and very properly so, on those who could not obtain the attestation required.

I have now adverted to the three principal topics to which I have called the attention of the Queen's confidential servants. There are many others of great importance to the welfare of Canada, but upon which I am anxious to receive your reports before proceeding further.

Of this kind are the engagements of the Land Companies, and the future disposal of the Crown Lands.

The means of communication for commercial purposes within the British territory, through the whole length of Canada, must always be a matter of the highest interest, both to Canada and to this country. But it seems to me that with a Legislature in Canada disposed to co-operate with the Queen and the Parliament of the United Kingdom, in developing her vast and unexplored resources, there is every hope that we shall behold the prosperity of that noble province augment every year, and add more and more to the strength and stability of the empire.

I have, &c., (Signed) J. RUSSELL. The Right Hon. Lord Sydenham, &c.

shall, excepting the reservations and modifications aforesaid, be held to have been concluded and signed, in the same manner as the present Convention, directly between her Majesty the Queen of the United Kingdom of Great Britain and Ireland, and the President of the Republic of Hayti.

The high contracting parties engage and promise reciprocally to each other, to execute faithfully all the clauses conditions, and obligations of the present Convention, subject always to the reservations and modifications therein contained; and in order to prevent any uncertainty, it has been agreed that the above mentioned Conventions, and the Annex of the latter, containing instructions to cruizers, shall be inserted here, word for word, as follows:

[Here follow the Conventions of November 30, 1831, and March 22, 1833, and the Annex containing the Instructions to cruizers, which have already been laid before Parliament.]

ARTICLE II.—It is agreed, with reference to the Vth Article of the instructions annexed to the Supplementary Convention of the 22nd of March, 1833, that all vessels bearing the Haytian flag, and appearing by their papers to belong to Hayti, which shall be detained in execution of the Conventions above described, by the cruizers of her Majesty the Queen of the United Kingdom of Great Britain and Ireland, shall be conducted or, sent to Port-au-Prince, capital of the Republic of Hayti.

ARTICLE III.-If the Republic of Hayti should not deem it expedient to fit out cruizers for the suppression of the Slave Trade, it nevertheless engages to furnish the special authority or warrant re

quired by the Vth Article of the Convention of the 30th November, 1831, to the commanders of the British cruizers, as soon as the names and the number thereof shall have been notified to the republic.

ARTICLE IV.-Whereas the Islands of Cuba and of Porto Rico are only separated from the Island of Hayti by a narrow strait each; and whereas the Republic of Hayti, as a free, sovereign, and independent state, possesses the exclusive right of police within its own waters; it is agreed that, by exception to Nos. 3 and 4 of Article I. of the Convention of the 30th November, 1831, British cruizers shall not search Haytian vessels navigating within that half of one or the other strait contiguous to the coasts of Hayti.

ARTICLE V.-It is also agreed: 1st. That Article II. of the Convention of the 30th of November, 1831, Article I. of the Convention of the 22nd of March, 1833, and No. 1 of the instructions thereunto annexed, shall, as far as the commanders of Haytian cruizers are concerned, be understood in this sense, that the said commanders shall be of the ranks therein specified, or of corresponding ranks.

2nd. That by exception to Article V. of the Convention of the 22nd March, 1833, that portion of the net produce of the sale of the captured vessels and of their cargoes, which falls to the share of the British cruizers, shall, conformably to the Haytian laws, be only fifty per cent. of the net produce of the sale; and it is further understood that no kind of head money will be due by the Haytian Government on captives found on board the said ships, and landed in the republic.

3rd. That the last paragraph of