Colonial Despatches

Mr Elliot
I have already noticed (in the local Newspapers) the proceedings of the Ho: of Assembly on this subject—but they have not yet reached the shape of an Act.

I need scarcely remind you that the policy of the Imperial Govt against granting exclusive privileges to Telegraph Cies on the continent of B.N.A. has been publicly & distinctly announced, on which point See P.P. Ho: Lords No 162, Sep/58. And H.M.Gt have very recently repeated the expression of this policy in the correspondence between Mr Collier and this office. See 7 Section of Col: Off Letter to Mr Collier of 14 Jan. last, which I annex. I wish, however, to observe that though it may be inferred that H.M.Got will not grant exclusive privileges to the H.B.Co in its design to establish a passenger and telegraphic route from Canada to the shores of the Pacific I fail to see any distinct intimation that such will be its course of action. In the territories of the H.B.Co we have at present no power to insist on such a policy; but in Canada, B. Columbia, & V.C. Island we can prevent exclusive privileges.

If you will take the trouble to look over the Correspondence laid before the Ho: C (which I annex) No 438, Sep. 1863 I think you will agree with me that the H.B.Co are not, in words at least, whatever may be the spirit of the correspondence, positively warned that H.M.G. will not sanction exclusive telegraphic privileges. But perhaps it was not necessary to be so precise. I only call attention to what seems to me to be the fact.

With regard to this particular measure to which Sir E. Head directs attention my belief is that the Bill will be found, when it comes home, to contain some clause saving the rights of the British Columbian & Canadian Line. But ought that Line to have any such saving right?

I have only to add that I have further noticed in the local Newspapers that the President of the California State Telegraph Co has visited V.C.Isld for the express purpose of carrying out this design of connecting Victoria & Washington Territory by the means of telegraphic wires—that if the Bill be passed in the V.C.I. Legre the line is to be commenced within 5 months, & completed within 13 months.

I would write to the Govr enclosing the P.P. respecting exclusive Telegraph privileges in N. Scotia & N. Brunswick—and stating the policy of HMG is directly opposed to the grant of any monopoly of Telegraphic communication—that any Law granting such a monopoly must not be assented to by the Govr without a suspending clause—and that Mr C thinks it most improbable that any such Law wd receive HM's approval or (if passed witht a suspg clause) be allowed to remain in operation.

Then send copy of the dph to the H.B.C.

Answer Sir E. Head that his suggestions will be fully considered & that the policy of the Govt has always been opposed to exclusive privileges.

Elliot to Head, 4 June 1864, acknowledging receipt of his letter and advising the matter would receive the full consideration of the government in view of their long-standing opposition to the granting of such exclusive rights.