M 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 
Gov
                     against granting exclusive privileges to Telegraph C on the
                     continent of B.N.A. has been publicly & distinctly announced, on which
                     point See P.P. Ho: Lords N 162, 
Sep/58. And H.M.G have very
                     recently repeated the expression of this policy in the correspondence
                     between
                     
M Collier and this office. See 7 Section of Col: Off Letter
                     to 
M Collier of 
14 Jan. last, which I annex. I wish, however, to
                     observe that though it may be inferred that H.M.Go will not grant
                     exclusive privileges to the
                     
H.B.C 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.C 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) N 438, Sep. 1863 I think you will
                     agree with me that the H.B.C 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 C
                     has visited 
V.C.Isl 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. Leg
                     the line is to be commenced within 5 months, & completed within 13
                     months.
                     
 
                  
                  
                   
               
               
                  
                  
                     I would write to the 
Gov 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 
Gov without a suspending clause—and that
                     
M C thinks it most improbable that any such Law 
w receive HM's
                     approval or (if passed with a susp clause) be allowed to remain
                     in operation.
                     
 
                  
                  
                     Then send copy of the dph to the H.B.C.